Bloomberg cited one of the people familiar with the matter saying that Stryker is planning to make an offer in the next few weeks.
A significant premium will be offered by Stryker to Smith & Nephew’s share price, possibly in the range of 30%.
Both companies’ representatives declined to comment on the takeover offer.
US-listed shares of Smith & Nephew rose 9.3% to $38 during late afternoon trading on the New York Stock Exchange, while Stryker shares were up 1.9% at $96.81, Reuters reported.
Smith & Nephew manufacture products for arthroscopy, wound management, trauma and clinical therapy, as well as orthopedic reconstruction. The company markets its products in 90 countries.
Smith & Nephew acquired surgical devices business Oratec Interventions for $310m in 2002. It also acquired Swiss orthopedics business Plus Orthopedics for $889m in 2007.
Stryker provides a diverse array of medical technologies, including reconstructive, medical and surgical, as well as neurotechnology and spine products, which are available in more than 100 countries worldwide.
Image: Smith and Nephew factory in East Riding of Yorkshire, UK. Photo: courtesy of Mtaylor848.