Bloomberg reporting that activist shareholder Elliott has taken a stake in perennial disappointment and takeover target Smith & Nephew reminds us that the idea of an activist entering the fray was suggested here with reference to another perennial disappointment – sleeping pharma giant GlaxoSmithkline.
CEO To Step Down
But as far as the wound management specialist is concerned, news this week that the thankfully the CEO is to step down after failing to shoot the lights out for seven years, does finally clear a fundamental log jam. It also means that after everyone and their mother has been speculating regarding S&N in recent weeks, and the company high on the M&A hit parade lists for 2017, we should see things start to gather momentum.
Therefore it would seem that the “UFO Alert” flagged here (at the website that must not be mentioned) some days ago has come into land.
Flushing Out An Offer?
The Elliott stake is likely to be the catalyst to flush out a long awaited offer for Smith & Nephew. Moreover, whatever they have already bought it is likely they will be looking to top up such a holding given that they would have expectations of a deal. Bidders such as the often named Stryker, and Johnson & Johnson can be assumed to be on the runway here at the now somewhat rudderless UK group.
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