Biomet in ‘merger discussions’

Orthopaedic device manufacturer Biomet, which includes British subsidiary Biomet UK, is the subject of takeover speculation resulting in upbeat share activity, according to traders.

An ft.com/alphaville report this week stating that Wall Street sources believe Biomet is engaged in merger discussions is thought to be the cause of the increase share activity, Reuters reports.

Frederic Ruffy, an analyst at options education firm Optionetics, told the news agency: “I am hearing the company is in advanced merger discussions with an undisclosed party. This could be a merger involving a larger company or possibly a private equity bid.”

Sources informed Reuters that despite talks with UK-based Smith & Nephew during the summer, an offer was not made, it is now uncertain if Smith & Nephew are again looking into a potential merger.

Biomet published its sales and earnings results for the first quarter ended August 2006 last month, reporting an increase in net sales of five per cent to $508.1 million (269.2 million pounds), with net income rising two per cent to $102.8 million (54.5 million pounds).

The company attributed these record results to its sales of dental reconstructive implants and orthopaedic reconstructive devices.