Quantcast
Thursday , August 17 2017
Breaking News
Home / International Customs / UK / US’s Stryker Corporation plans takeover offer for British Smith & Nephew
US’s Stryker Corporation plans takeover offer for British Smith & Nephew

US’s Stryker Corporation plans takeover offer for British Smith & Nephew

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.