Smith & Nephew scraps £5.6bn takeover
Options backdating scandal at acquisition target Biomet leads to S&N withdrawing its billion-pound tender offer
Options backdating scandal at acquisition target Biomet leads to S&N withdrawing its billion-pound tender offer
Smith & Nephew
has abandoned its $11.9bn (£5.6bn) bid for a major US prosthetics maker after
its prospective target had to delay the release of its interim results in the
wake of an options backdating probe.
The UK corporate had been touted as the frontrunner to acquire
Biomet but the deal fell
through after S&N learnt of the scandal.
Biomet has now been bought by a private equity consortium for $10.9bn.
‘There is no set of audited accounts on which a public company buyer can
rely,’ a source close to the takeover process told The Guardian. ‘A
private equity company doesn’t quite have the same obligations as a public
company.’
More than 150 US companies have started investigations into possible
instances of the practice, which manipulates executive earnings by choosing an
option grant date at which the stock value was relatively low as a reference
point, giving shareholders an inflated view of a company’s prosperity.
Apple was the
most recent high-profile corporation to concede that it would have to delay its
results as it conducts a probe into its accounts.
Related links:
Apple bruised by options scandal
More stock probes shake industry
McAfee chief quits over stock option
scandal
The numbers you crunch tell a story. Your expertis...
17yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThere is optimism that the IPO market will rebound in the second half of 2024, driven by pent-up demand and potential improvements in economic conditi...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleKPMG confirms reappointment of it's UK chair, while EY announces Janet Truncale as the next EY global chair and CEO Read More...
View articleThe ICAEW has announced the appointment of its forthcoming chief executive Read More...
View article