Boston, MA 05/28/2014 (wallstreetpr) – In its action to put an end to the speculations, Stryker Corporation (NYSE:SYK) promptly released a statement denying its plans to acquire a London based Smith & Nephew, an orthopaedics company.
No Deal Underway
Despite the quick disclosure by Stryker, the shares of the London based Smith & Nephew are seen rallying on its respective exchange. During the early hours today, reports emerged that Stryker Corporation (NYSE:SYK) is mulling plans to acquire Smith & Nephew in a multi-billion pound transaction and is soon expected to disclose the complete details. In addition to this, it was also claimed that the company might employ inversion and would relocate its headquarters to the United Kingdom in order to slash down its taxes. The news resulted in the surge of the shares of the company by as much as 6% during the early hours, however, the timely disclosure led to the paring of gains.
Stryker Corporation (NYSE:SYK) published in its official statement that the U.K. Takeover Panel has asked the company to issue a statement in this regard. Further, Stryker stated that it is not permitted to bid for Smith & Nephew as per the U.K.’s applicable rules for the time period of six months except under specified circumstances. The report speculating the deal first appeared in the Financial Times, where the company was said to have engaged the services of investment bankers to assess the transaction and assist with the finance arrangement.
The news comes on the backdrop of the Pfizer Inc. (NYSE:PFE)’s recent failed attempt to takeover UK based AstraZeneca plc (ADR) (NYSE:AZN). The offer had then become a subject of debate and had drawn scrutiny as the regulators and experts felt that the deal was largely intended to make a way out of the hefty taxes. Similarly, Smith & Nephew has always been touted as a potential acquisition target, particularly when the orthopaedic industry is going through consolidation. Johnson & Johnson (NYSE:JNJ) has already acquired Swiss based Synthes back in 2011 through a $21.3 billion deal, however the transaction took over a year to get clearance from the stringent regulators.