Summer Street Research Partners Reacts to FTC Request for More Information from Zimmer Holdings

In a report published Thursday, Summer Street Research Partners analyst Mark Landy reiterated a Buy rating and $133.00 price target on Zimmer Holdings (NYSE: ZMH).In the report, Summer Street Research Partners noted, “Zimmer and Biomet just announced that they have each received a second request for additional information from the FTC in connection with ZMH's proposed acquisition of Biomet. The second request will extend the waiting period imposed by the HSR Act until 30 days after ZMH and Biomet have substantially complied with the request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC. The proposed transaction remains subject to the expiration or termination of the waiting period under the HSR Act, antitrust clearance in certain foreign jurisdictions, as well as other customary closing conditions. This second request is in line with our expectations for extensive reviews by all the global anti-competitive agencies involved, and we do anticipate some divestitures being required to close the deal. That said, we believe ZMH will be able to close the transaction with the combined company keeping the vast majority of its businesses intact. The deal is expected to close in 1Q15.”Zimmer Holdings closed on Wednesday at $104.86.