CareFusion, Smiths Group Shares Fall as Deal Talks Collapse
Stock Chart for CareFusion Corp (CFN)
Shares in San Diego-based CareFusion fell 6 percent to $36.61 at the close in New York, the biggest single-day decline since January 2012, leaving CareFusion valued at $8 billion. Smiths fell 5.5 percent to 1,320 pence, the most in two years, in London trading.
Smiths said May 31 it had received an approach for its medical-equipment division, which makes critical-care and surgical products for hospitals. The Financial Times a day earlier had reported the London-based technology company was considering a sale valued at more than 2 billion pounds. Bidders might include CareFusion, the newspaper said. The American company makes medical pumps, ventilators and medicine dispensers.
“It has not proved possible to reach agreement with the potential party on acceptable terms for a transaction,” Smiths said in a statement today. “Discussions have therefore been terminated.”
In February 2011, Smiths had spurned a 2.45 billion-pound offer for the business. It valued the unit at 3.1 billion pounds, people familiar with the matter said at the time.
Trading volume in both CareFusion and Smiths today was more than three times the three-month daily average.
To contact the reporter on this story: Alex Webb in Munich at email@example.com