Smiths Group sinks after rejecting approach for medical division

2nd Aug 2013 16:57

A late announcement from technology firm Smiths Group sent the FTSE 100 firmly into the red on Friday after the company revealed that it had rebuffed an approach for its medical division.Smiths said back in May that it had received a "preliminary approach" but has now confirmed that it could reach an agreement. The company said that it was unable to agree on "acceptable terms" with the unnamed party and that it had now walked away from the potential deal. "Discussions have therefore been terminated," the firm said in a statement. "In reaching this conclusion, the board has taken full account of the quality and highly cash generative nature of Smiths Medical, both standalone and in the context of the group as a whole."Smiths Medical, which is a provider of medical devices for the hospital, emergency and home markets, played a role in the first successful IVF treatment in 1978 with its embryo transfer.At the time the approach was first announced, sourced predicted that the business could be worth over £2.0bn.The stock finished Friday's session down 5.51% at 1,320p, leaving its market capitalisation at around £5.2bn.BC