LONDON: Stryker Corporation, US surgical implant maker is planning a takeover offer for British medical device maker Smith & Nephew that may come within weeks.
Smith & Nephew’s London listed shares rose 7.5 percent in early trading on Wednesday, to give it a market value of 10.6 billion pounds ($16.5 billion). Stryker shares closed up 1.7 percent at $96.61.
Stryker plans to offer a significant premium to Smith & Nephew’s current share price, it could be about 30 percent.
Analysts and bankers have speculated for years that the British company could be an attractive target for a company such as Stryker. The US firm said in May that it was not working on a takeover offer, which meant that under British takeover rules it could not make a bid for another six months.
Michigan based Stryker is not considering a supposed “tax inversion” because of limited tax benefits and political risk.
The bid is still being finalized and the timing could change. There’s also a possibility that Stryker could decide against an offer.