Zimmer Makes Bid for Centerpulse

Zimmer Holdings Inc. bid about $3 billion for Europe’s largest orthopedic devices maker, Centerpulse, topping a rival offer from Smith & Nephew and raising the specter of a transcontinental bidding war.

Warsaw, Ind.-based Zimmer, a maker of artificial hips and knees, is trying to outmaneuver its competitors in the $14-billion orthopedics market, which is growing 12% a year.

News of the bid sent Zimmer shares down $3.83, or 8%, to $44.45 on the New York Stock Exchange.

Britain-based Smith & Nephew shares fell $4.87 to $62.95 on the NYSE. Its offer for Centerpulse is worth about $2.5 billion. Smith & Nephew officials said they were reviewing the Zimmer bid.

Swiss-based Centerpulse said it would evaluate Zimmer’s offer.

From Reuters