MARKET REPORT: Investors hip to Smith & Nephew as rumours intensify over Stryker Corporation knock-out bid
By GEOFF FOSTER FOR THE DAILY MAIL
According to the powers that be, corporate financiers have been burning the midnight oil working on an absolute Christmas cracker of a mega-deal which could push the fabulous Footsie through the magic all-time high level of 7,000.
Shares of artificial hip and knee replacement group Smith & Nephew rallied from 1069p to touch 1093p before closing 6p better at 1087p as rumours intensified that rival US medical technologies firm Stryker Corporation will strike with a knock-out £13billion-plus or near £15 a share cash bid when its Takeover Panel handcuffs are removed at the end of the month.
Following intense bid speculation in May, Stryker said that while it had been in early stages of considering an offer for S&N, it would not be proceeding with an offer. Under takeover rules it was immediately precluded from making an offer, should it wish to do so, until the end of November.
US medical technology group Medtronic had also had a good look at S&N before forking out a mammoth £25.3billion on Irish firm Covidien, leaving the way clear for Stryker.
Rumours have been rife in recent weeks that S&N could be looking to sell its wound care business for £2.6billion. A bidder (Stryker?) would obviously be keen to pounce before it concludes any sale.
Read more: http://www.thisismoney.co.uk/money/markets/article-2843182/MARKET-REPORT-Investors-hip-Smith-Nephew-rumours-intensify-Stryker-Corporation-knock-bid.html#ixzz3JixtGB00
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