Smith & Nephew Gains On Rumor Of New Stryker Bid

Stryker Corporation SYK is preparing another bid for Smith & Nephew plc (ADR) SNN, according to a report on Monday by Bloomberg.

Smith & Nephew's American depositary receipts gained nearly 3 percent early Monday on the report, which cited unnamed sources.

Surgical implant maker Stryker confirmed last May it had made an offer for Smith & Nephew, a U.K. medical device concern. Under British rules, Stryker must wait until December to make a further bid.

Bloomberg said U.S.-based Stryker may structure the proposal as a so-called inversion which would move Stryker's headquarters offshore for tax advantages. The U.S. Treasury announced new rules in September aimed at discouraging such arrangements.

A potential Stryker bid for Smith & Newphew, however, would not be dependent on an inversion, Bloomberg said.

Earlier this month, Stryker agreed to pay about $1.4 billion to settle thousands of lawsuits concerning its metal-on-mental hip replacement devices recalled in 2012.