Smith & Nephew suffers as J&J buys rival

first_img Shares in prosthetic limb maker Smith & Nephew have fallen 3.2 per cent on the news that US healthcare giant Johnson & Johnson is to buy its Swiss rival Synthes.J&J is to buy Synthes, which makes medical devices, for 19bn Swiss francs (£13.1bn) in its largest ever buy, to boost its orthopaedic business and reshaping the industry.The US healthcare group will pay CHF 159 in cash and stock for each Synthes share, the two companies have said – a premium of 8.5 per cent over Synthes’s closing share price on Tuesday.A deal had been anticipated after Synthes said on April 18 it was in talks with J&J, but puts an end to speculation that a link-up with S&N could be revived.In January, S&N rejected a 750p per share offer from J&J, which valued it at £7bn. Analysts said the offer was too low, and argued that S&N could command an offer of 1,057p per share, or £9.42bn.S&N shares were trading at 649p at 13:00 GMT today.J&J’s acquisition, which is likely to close in the first half of 2012, has the backing of both the Synthes and J&J boards and will give J&J a leading position in equipment to treat trauma.Synthes, which posted sales of $3.7bn in 2010, makes nails, screws and plates to fix broken bones, as well as artificial spine discs.“Orthopaedics is a large and growing $37bn global market and represents an important growth driver for Johnson & Johnson,” said Bill Weldon, J&J’s chairman and chief executive.The deal is expected to have a modestly dilutive impact on J&J’s adjusted earnings per share for 2012.Crucially, the deal has the backing of Hansjoerg Wyss, who holds 40 per cent of Synthes directly and another eight per cent through family trusts, and was seen as key to any deal going through. Synthes holds its annual general meeting on Thursday.“It is surprising the deal has been struck between cash and shares. The market consensus, and our view, was it would be all cash, so the quality of the take-out is slightly lower than we anticipated,” said Morgan Stanley analyst Michael Jungling.“The take-out valuation doesn’t seem particularly demanding. It’s a scarce asset, and the acquisition makes J&J the number one in the world in orthopaedics,” Jungling said. whatsapp Share Smith & Nephew suffers as J&J buys rival Tags: NULL alison.lock center_img More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comConnecticut man dies after crashing Harley into live bearnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.com whatsapp Wednesday 27 April 2011 8:13 am by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesHero Wars This game will keep you up all night! Hero Wars Gundry MD Total Restore SupplementWhat Rice Does to the Human BodyGundry MD Total Restore SupplementFilm OracleHer Love Triangle Inspired 3 Of The Most Popular Songs Ever WrittenFilm OracleLiver Health1 Bite of This Melts Belly And Arm Fat (Take Before Bed)Liver HealthBetterBeDrones Capture Images No One Was Suppose to SeeBetterBeThe No Cost Solar ProgramGet Paid To Install Solar + Tesla Battery For No Cost At Install and Save Thousands.The No Cost Solar Program Show Comments ▼last_img

Leave a Reply

Your email address will not be published. Required fields are marked *