Boston Scientific shares jump on report of possible takeoverBy JOE CARLSON
Star Tribune (Minneapolis)
June 11. 2018 8:33PM
Shares in medical-device maker Boston Scientific closed up more than 7 percent Monday after a report that it has received a “takeover approach” by Michigan-based orthopedic device company Stryker Corp.
The Wall Street Journal, citing unnamed sources familiar with the matter, reported Monday that Stryker recently made its takeover bid to Massachusetts-based Boston Scientific Corp. It was not clear that it was receptive to the offer to create a medical-device company with a combined value of more than $110 billion, according to the Journal.
The news report emphasized that “it is far from guaranteed there will be a deal.” However, if a deal is done, it would be one of the larger deals of the year.
A spokesman for Boston Scientific cited a practice of not commenting on “rumors or speculation.”
The report comes at a time when corporate deal-makers are closely scrutinizing large deals, including AT&T’s pending merger with Time Warner, an $85 billion deal that the Justice Department has sued to block. If the AT&T-Time Warner tie-up gets a favorable ruling from a federal court this week, it could invigorate interest in other deals around the country, observers say.
Though it has recently stressed to investors its ability to innovate new technologies, over the years Boston Scientific has grown through acquisitions.
Boston runs a sizable campus in Arden Hills, Minn., where heart-rhythm devices like pacemakers and defibrillators are designed and made.
On Monday, Boston had a market capitalization of $44 billion, compared to Stryker’s $66.88 billion.
Boston Scientific closed at $34.33, up 7.45 percent; while Stryker closed at $169.78, down 9.17.