Smith & Nephew surges as rumours resurface about Stryker takeover bid
Shares in Smith & Nephew surged in London on Wednesday on the back of rumours that US surgical implants group Stryker Corp could return to the table to launch a takeover offer within weeks.
FTSE 100
8,177.15
16:39 01/11/24
FTSE 350
4,508.38
17:14 01/11/24
FTSE All-Share
4,465.61
16:54 01/11/24
Health Care Equipment & Services
10,406.99
17:14 01/11/24
Smith & Nephew
966.80p
16:40 01/11/24
Stryker Corp.
$367.15
11:10 01/11/24
Stryker’s chief executive had said back in May that the company had been evaluating a bid for its UK rival that never emerged.
Now, with the six-month standstill period having ended during which Stryker was not allowed to make a bid, the company is said to be planning a renewed approach.
According to Bloomberg, which cited “people with knowledge of the matter”, Stryker is looking to make a bid at a premium of around 30% to S&N’s current share price.
The London-listed stock, which closed at 1,089p per share on Tuesday, had a market capitalisation of around £9.7bn after a 26% jump year-to-date.
The shares advanced nearly 9% to 1,183p in early deals on Wednesday, valuing the company at around £10.6bn.
Bloomberg’s sources said that Michigan-based Stryker is not planning a controversial tax-inversion deal because of the limited tax benefits and political risk associated with a potential takeover.
Speculation about a soon-to-be-announced proposal resurfaced last month on reports that Stryker was weighing up the financing of a possible deal and looking at potential anti-trust obstacles.