Shares of Smith & Nephew plc (ADR) (NYSE: SNN) spiked nearly 12 percent mid-day Tuesday following news that Stryker Corporation (NYSE: SYK) is planning a takeover offer for the U.K. medical device maker, according to a Bloomberg report.
Stryker shares also popped up 2.4 percent following the report before pulling back.
“The U.S. producer of surgical implants plans to offer a significant premium to Smith & Nephew’s current share price, with one of the people saying it could be about 30 percent. Shares in London-based Smith & Nephew have climbed 26 percent this year, valuing the company at about 9.7 billion pounds ($15 billion),” according to the report.
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The bid, which could come within a few weeks, is not yet finalized and neither company has commented publicly on the news. According to sources, Stryker was discussing financing and antitrust issues in November with advisers.
The report indicated that “Medical-device companies are looking to consolidate as hospitals and insurers demand better prices from suppliers to tame rising costs.”
Smith & Nephew plc (ADR) recently traded at $38.20, up 9.83 percent.
Stryker Corporation recently traded at $96.47, up 1.56 percent.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.