Will the Latest Smith & Nephew Rumor Actually Pan Out? (MD+DI)
It must be that time of year.
Wall Street is once again abuzz with speculation of a potential Smith & Nephew takeout. Deal rumors have swirled around the London-based medical device firm for years, this time fueled by CEO Olivier Bohoun’s retirement plans, coupled with unconfirmed reports that activist investor Elliott Management Corp. has taken a stake in the company.
Smith & Nephew recently notified investors that Bohoun will retire by the end of next year, after seven years as CEO. Reports of Elliott Management Corp.’s interest in the company surfaced a day after the company announced Bohoun’s intention to retire. A Bloomberg report cited unnamed sources familiar with the investment deal but said it is not clear how much of the company the hedge fund owns.
Based on these recent developments, medtech analyst Mike Matson of Needham & Co. said the probability of Smith & Nephew being acquired in the next 12 months has increased. “We believe the two events might be related and that they likely signal a change in strategy that could include selling the company,” Matson said in a note issued Tuesday mor...
