S&N shares spike again on bid rumours

 
Elizabeth Fournier
FOR the second time in a fortnight, shares in Smith & Nephew jumped on rumours of a takeover bid by Johnson & Johnson, peaking at 123.50p during morning trading yesterday.

Shares in the prosthetic limb manufacturer were up 5.62 per cent at 723.5p by 9.30am, before dipping slightly over the afternoon to close 3.5 per cent up at 709p.

A December offer from the US pharmaceuticals company, which priced the company at 750p per share, was rejected for being too low. Reports yesterday suggested that J&J was preparing to return with an increased bid of 800p per share, which would value Smith & Nephew at just over £7bn.

Neither company was prepared to comment yesterday.