(Reuters) — U.S. medical device maker Stryker (NYSE:SYK) is examining a bid for Britain’s Smith & Nephew (FTSE:SN, NYSE:SNN) as a regulatory restriction barring an offer comes to an end, Bloomberg reported today, citing unnamed sources.

Shares of Smith & Nephew, which makes artificial knees and hips, rose as much as 10%.

The stock was up 3.4% at at £11.36 at 15:18 GMT after the report was published. Three traders cited the report as the reason behind the stock’s gain.

Stryker shares were up 0.3% at $90.38.

“Smith & Nephew never comments on speculation," a spokeswoman said. Smith & Nephew has a market capitalization of about £9.7 billion ($15.2 billion).

Stryker did not immediately respond to requests for comment.

The company denied May 28 that it intended to make a bid for its U.K. rival, responding to a request from Britain’s Takeover Panel, the regulatory body in charge of deal activity.

That followed media reports that it could make an offer.

By denying its interest in May, Stryker ruled itself out of bidding for 6 months under a "standstill agreement" that is due to end Nov. 28.

Analysts have frequently speculated that Smith & Nephew may attract takeover interest.

Johnson & Johnson (NYSE:JNJ) approached Smith & Nephew 5 years ago on a possible offer, according to people familiar with the matter.

Bloomberg said that Kalamazoo, Mich.-based Stryker was in talks regarding the financing of a deal and the potential monopoly issues with its advisers.

U.S. healthcare companies have sought to acquire a number of British-based rivals so far this year, with many deals largely driven by potential tax savings.

However, recent actions by the U.S. Treasury Dept. have made such deals less attractive.

($1 = £0.6380)