Smiths Group rallies with ICU bid

Smiths Group rallies with ICU bid

Smiths Group Plc (LON:SMIN) has seen its share price rally in trading today as US healthcare firm ICU Medical revived its failed bidding campaign for the medical arm of the British engineering firm.

It has been reported that the bid tabled on Monday – of between £2.5-£2.8 billion made up of cash and ICU shares – has since been rejected, though talks are set to continue with the absence of a stock exchange announcement to the contrary.

This latest round of talks comes after ICU, a healthcare company specialising in devices for infusion therapy and oncology, was about to completely pull out of talks with Smiths Group over a potential merger, which would have created a $7.5 billion giant.

Smith Medical accounts for just 30% of the group’s overall revenues, and is forecast to see a 2% revenue dip over the course of the year with new regulations meaning the loss of certifications and two contracts in the US.

Yesterday’s bid saw Smith’s share price rally 1.4%. It currently stands at 1,620p, up 2p or 0.12% since markets opened this morning. Analysts from Numis have reiterated their ‘Hold’ stance on Smith stock, while Deutsche Bank analysts have retained their ‘Buy’ stance.