Shares in Smiths Group (LON:SMIN) have climbed higher in London in today’s session, holding steady as the company confirmed that it had scrapped talks about a potential combination of its Medical business with ICU. The news comes after it emerged last month that the London-listed group was leaning towards a decision to halt the negotiations.
As of 14:08 BST, Smiths’ share price had added 0.57 percent to 1,576.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.02 percent higher at 7,315.00 points. The group’s shares have lost about 2.5 percent of their value over the past year, as compared with a near one-percent fall in the Footsie.
Smiths and ICU scrap merger talks
Smiths Group announced in a statement today that its discussions with ICU over a potential combination of its medical business with the Nasdaq-listed group had ended because the parties had been unable to agree the terms of a combination. The company, however, noted that it was “important that any such combination did not undervalue Smiths Medical and its prospects”.
“We have ended discussions with ICU today after careful consideration and in the interests of our shareholders,” the FTSE 100 group’s chief executive Andy Reynolds Smith said in the statement.
Smiths Group added that it will “continue to review all options for its businesses”.
Analysts on FTSE 100 group
The 12 analysts offering 12-month price targets for Smiths Group for the Financial Times have a median target of 1,740.00p on the shares, with a high estimate of 2,000.00p and a low estimate of 1,600.00p. As of September 7, the consensus forecast amongst 15 polled investment analysts covering the blue-chip group has it that the company will outperform the market.