Zimmer in Medtronic takeover rumours

Experts have predicted that Medtronic is to put in a takeover bid for Zimmer in a merger deal worth billions of dollars that could result in the formation of the largest orthopaedic medical device company in the world.

Michael Rosen of the Wisconsin Technology Network reports that there are strong rumours Medtronic may launch a takeover bid for Zimmer during 2007, an opinion echoed by Kristen M Stewart, an analyst at UBS.

“Through the acquisition of Zimmer, Medtronic would hold the number one share in hips, knees and spinal markets,” Ms Stewart wrote in an industry paper.

“The combination would create an orthopaedic powerhouse,” she added.

Despite much speculation, commercialappeal.com reports that a spokesperson from Medtronic, Bert Kelly, has stated that he is unaware of such an acquisition being in the pipeline, while Zimmer spokesperson Brad Bishop elected to issue no comment on the matter.

Thomas Gunderson, an analyst with Piper Jaffray, told commercialappeal.com that he was sceptical of any takeover taking place, with a merger being part of the “rumour mill” for the past half-decade, with Medtronic having rejected the notion of acquiring the company in the past and having no reason to change this opinion.