5th Jun 2014 08:28
LONDON (Alliance News) - Hot on the heels of Stryker Corp denying plans to acquire Smith & Nephew PLC last Wednesday, fellow US medical device maker Medtronic Inc is considering a takeover bid, Bloomberg reported Thursday, citing people familiar with the matter.
Medtronic's bid is at an early stage, the report said, and no offer is imminent. According to the report, Smith & Nephew are aware of Medtronic's interest, as are investment banks.
A takeover could allow Medtronic to re-domicile in the UK in order to cut its taxes.
"The benefits of tax inversion appear to be a key driver of the apparent interest in Smith & Nephew by Medtronic and Stryker, as it was for Pfizer with AstraZeneca," said Edison Investment Research analyst Mick Cooper.
"There would also be a solid strategic rationale for a deal with either company, but given Smith & Nephew?s impressive development under Oliver Bohuon, a material premium would need to be offered by any potential bidder."
FTSE 100-listed Smith & Nephew has a market value of around GBP9.5 billion.
A spokesperson for Smith & Nephew said that there was "no comment" on the rumoured bid.
Smith & Nephew's shares rose more than 10% last week following the report of the Stryker bid, and are trading up 3.9% at 1,105.00 Thursday morning.
http://www.bloomberg.com/news/2014-06-04/medtronic-said-to-evaluate-takeover-of-smith-nephew.html
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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