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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2784)	4/18/2011 3:03:47 AM
From: richardred	Respond to of 7256

UPDATE 3-Synthes confirms in deal talks with J&J Mon Apr 18, 2011 2:35am EDT By Katie Reid ZURICH, April 18 (Reuters) - Synthes (SYST.VX) said on Monday it was in takeover talks with Johnson & Johnson (JNJ.N), after reports the U.S. group is looking to buy the Swiss medical device maker for about $20 billion. A source familiar with the situation told Reuters at the weekend the two sides were in preliminary talks. [ID:nN16116336] A deal at $20 billion would mark an 11 percent premium over Synthes's current market capitalisation of about $18 billion and would allow healthcare conglomerate J&J to further diversify its healthcare business. Shares in Synthes were indicated 4.5 percent higher, according to pre-market data provided by bank Clariden Leu, after gaining 6.2 percent on Friday as talk circulated that J&J or Medtronic (MDT.N) could be looking to buy the company. "In response to market speculation, Synthes Inc confirms that it is engaged in discussions with Johnson & Johnson about a potential business combination transaction," Synthes said in a statement. "No assurance can be given as to whether, when or on what terms any possible transaction might occur. Synthes does not intend to make any further public statements unless and until a definitive agreement has been reached, or until discussions between the parties have terminated," the group said. Buying Synthes would be J&J's biggest acquisition and would help the cash-rich U.S. healthcare conglomerate further diversify its business by giving it a leading position in equipment to treat broken bones and trauma. Synthes makes nails, screws and plates to fix broken bones as well as artificial spine discs. So far this year, its shares have risen 9.8 percent, outperforming a near 1 percent fall in the European health care sector index .SXDP. reuters.com