Smith & Nephew in J&J sights

10th Jan 2011 07:24

Shares in artificial joint specialist Smith & Nephew soared more than 10% after widespread reports that it rejected a bid approach from giant US rival Johnson & Johnson just before Christmas.J&J is said to have offered about 750p per share, valuing the knee joint maker at almost £6.7bn. The shares closed on Friday at 650p.Smith & Nephew has yet to make a comment on the reports, but may be forced to make an offical statement if the share price takes off.J&J had its approach rebuffed, the reports said, on the grounds it was too low, but is said to be considering whether to come back with a higher offer.It is likely to face stiff compettion if the S&N board is seen as receptive to a takeover. S&N's US rivals Stryker and Zimmer have often been mentioned as possible bidders in the past.Any bid would also test the resolved of Business Secretary Vince Cable on the issue of overseas takeovers of UK firms after the controversy that surrounded Kraft's takeover of Cadbury.