Two years after rejecting a £2.45bn private equity bid for its medical division, break-up favourite Smiths Group (SMIN) has admitted the sale is back on. This time the bidder is thought to be US healthcare firm CareFusion and the asking price nearer £3bn.
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Global equity markets have risen since 2011 and any deal would have to reflect the huge cost and revenue benefits a trade buyer would enjoy. "We have to assume this is more serious," says Sandy Morris, an analyst at Jefferies. "Medical is in a good place and few of these businesses ever come up for sale." That could stir interest from rivals such as Baxter Healthcare, Covidien or B Braun.
