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Smith & Nephew, Stryker Shares Surge Following Report Of Takeover Bid

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Shares of Smith & Nephew plc (ADR) (NYSE: SNN) spiked 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.

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 recently traded at $39.16, up 12.6 percent.

Stryker recently traded at $96.43, up 1.52 percent.

 

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Posted-In: BloombergM&A News Rumors

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