Stryker Said to Plan Takeover of Smith & Nephew

The transcript discusses a potential bid by Striker for Smith and Nephew, a UK-based medical device company. Initially, the bid was delayed due to UK takeover rules. The rationale for the acquisition has shifted from tax inversion benefits to cost reduction for hospitals and insurers. The bid could offer a 30% premium, and the deal is seen as a strategic move to trim costs, similar to the Medtronic-Covidien deal.

What was the reason for Striker's six-month pause in their acquisition process?

• They were negotiating with other companies.

• They were complying with UK takeover rules.

• They were waiting for a better market condition.

• They needed more time to gather funds.

What premium might Striker pay for Smith and Nephew?

• 40%

• 30%

• 20%

• 10%

Why might current shareholders of Smith and Nephew be optimistic?

• The company is planning to expand globally.

• The company's value has increased by a quarter this year.

• The company is launching a new product line.

• The company is merging with another tech giant.

What was the initial trend in acquisition strategies back in May?

• Increasing workforce.

• Expanding into new markets.

• Focusing on technological advancements.

• Tax inversions.

What is the current rationale for Striker's acquisition of Smith and Nephew?

• To enter the pharmaceutical industry.

• To reduce costs for hospitals and health insurers.

• To diversify their product offerings.

• To increase their market share in Europe.