Stryker said to be mulling a bid for Smith & Nephew, shares rise

US medical technology outfit Stryker is laying the groundwork of another bid for British rival Smith & Nephew.

The manufacturer of surgical implants has been in discussions with advisers regarding the possible financing of a deal and the potential anti-trust hurdles which it might face, should it proceed with a transaction which is valued at approximately $16bn.

The potential takeover target and its advisers were already aware of the American company’s interest, but it was still possible that its suitor might pull out, according to Bloomberg.

Stryker was considering pursuing a so-called tax-inversion structure, which would see it re-domicile to the UK.

The legal limitation on the Michigan-based company’s ability to make another takeover attempt, after it pulled out from a bid earlier in the year, was set to expire this week.

As of 14:54 shares of Smith Nephew were rising by 4.33% to 1,137.15p.