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 has changed regarding the rationale for the acquisition since May?

What are the broader implications of the acquisition for U.S. hospitals and health insurers?