Stryker (SYK) Said Planning Acquisition of Smith & Nephew (SNN) - Source

Stryker (NYSE: SYK) has tabled an approximately $18 billion offer for Smith & Nephew (NYSE: SNN), according to a person with knowledge of the situation. Goldman Sachs is acting as advisor, and deal talks could move quickly, the source said.

This isn’t the first time rumors about the bid have surfaced, but the merger never came about for reasons that are not clear.

Discussing M&A on the company’s third-quarter conference call, Stryker CEO Kevin Lobo said M&A is difficult to predict in terms of timing, though he said M&A continues to be the company’s first priority in terms of using cash.

Lobo went on to say, “…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.”

When asked to respond to the rumor, a representative from Stryker said it doesn’t comment on M&A activity. Smith & Nephew also declined to comment.

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