On Dec. 23, Smith & Nephew stock jumped when anonymous reports emerged citing new details about Stryker’s desire for the company, according to a Barron’s report. Here are five quick updates about the possible deal:
1. Rumor has it that Stryker would be willing to pay a 30 percent premium for Smith & Nephew.
2. Stryker likely will not pursue a tax-inversion strategy, due to recent political pressure. After acquiring the London-based company, Stryker could move headquarters overseas where the tax climate is more favorable, but new reports say political pressure will likely leave any headquarters move out of the mix.
3. Smith & Nephew shares were up 10 percent this past Tuesday after the rumors surfaced. Stryker shares were up 1.6 percent.
4. The combined company would have more negotiating power with insurance companies and hospitals, according to the report.
5. The transaction announcement is expected in the coming weeks, but Stryker could still pull out, according to the report.
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