A Stryker (NYSE:SYK) bid for Smith & Nephew (FTSE:SN, NYSE:SNN) could be in the works at a significant premium to the British orthopedic & wound care firm’s share price.
Citing "people with knowledge of the matter," Bloomberg reported that Stryker’s offer could come as soon as the coming weeks. One source said the premium could be as high as 30%, according to the news service.
Although Smith & Nephew is based in London, the deal would not be structured as a so-called tax inversion "because of the limited tax benefits and political risk," according to a Bloomberg source who asked not to be identified because the deliberations are private. The sources said the offer is still being finalized and the timing could change, with 1 saying that Stryker could still decide not to make an offer after all.
Representatives for Stryker and Smith & Nephew declined to comment for the news service.
SNN shares were up 11.2% to $38.69 apiece as of about 2:10 p.m. today on Wall Street; SN shares closed down 1.7% at £10.89 in London.
SYK shares were up 1.5% to $96.40 each, after spiking to a 52-week high of $98.42 today.