US-based Stryker set to pounce on Smith&Nephew

18th Dec 2015 16:07

(ShareCast News) - Stryker may be set to pounce on rival Smith&Nephew according to a person with knowledge of the situation, Street Insider reported.Although rumours about just such a transaction had been percolating through markets for a long time, they had not lost their power to influence the share price of both companies.During the company´s third quarter earnings conference call on 10 December, chief Kevin Lobo said M&A continued to be the firm´s number-one priority when deploying its cash, although the timing was difficult to predict."Valuations is one factor; it's not always the only factor. We also have issues sometimes around quality, of remediation that's required. Sometimes it's cultural fit, so there's always a range of issues that we go through when we're looking at a target, and as we get under the covers and do due diligence, then we sort of figure out whether we really want to move forward or not," Lobo said.As of 16:04 stock in London-listed orthopaedics equipment manufacturer Smith&Nephew were rising by 5.27% to reach 1,179p while those of its New York-listed rival Stryker were down 0.53% to $92.20.