28th May 2014 13:41
LONDON (Alliance News) - US medical device maker Stryker Corp said Wednesday that it "does not intend" to make an offer for FTSE 100 listed Smith & Nephew PLC, after the Financial Times quoted people familiar with the matter saying that Stryker was preparing a bid.
The FT reported that Stryker had hired banks and was working on assembling finance for the bid. It said a deal would likely value Smith & Nephew at around its market capitalisation of GBP8.35 billion.
Earlier in the year Smith & Nephew acquired US based medical devices company AthroCare Corp for USD1.7 billion.
At its full year results in May, Smith & Nephew posted a pretax profit of USD229 million, up from USD207 million in the previous year, benefiting from a USD35 million one off gain from the closure of its US pension plan. Its revenue was unchanged at USD1.07 billion.
Shares in Smith & Nephew were trading up 3.1% at 9982.00 pence Wednesday afternoon, having risen as high as 17.5% following the FT's article.
A spokesperson for Smith & Nephew was not immediately available to comment.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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