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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/smith-nephew-set-for-new-offer.jpg"><img class="alignnone size-full" title="Johnson &#038; Johnson is to launch a fresh takeover assault on replacement hip and knee specialist Smith &#038; Nephew, it has been reported" src="http://londonglossy.com/wp-content/uploads/2011/01/min-smith-nephew-set-for-new-offer.jpg" alt="Johnson &#038; Johnson is to launch a fresh takeover assault on replacement hip and knee specialist Smith &#038; Nephew, it has been reported"/></a></p>
<p>Healthcare giant Johnson &#038; Johnson is expected to launch a fresh assault on Smith &#038; Nephew in a deal that values the FTSE 100 firm at more than £7 billion, it has been reported.</p>
<p>The US firm is understood to be considering making a formal offer for the group after a tentative approach was rejected last year, according to the Sunday Times.</p>
<p>A revised bid is expected to be worth at least 800p a share, well up on the previous approach of 750p a share, which is thought to have been rejected by Smith&#8217;s board on the grounds that it undervalued the company.</p>
<p>Shares in Smith soared to an all-time high of 735p last week following rumours that it had rejected a bid approach from Johnson &#038; Johnson, although they later fell back to 685p.</p>
<p>But the speculated new offer by Johnson &#038; Johnson may still be rejected, with Sebastian Jantet, an analyst at Investec Securities, saying a fair price for the company would be around £9 a share, valuing the leading maker of hip and knee replacements at £8 billion.</p>
<p>Smith&#8217;s board is also understood to have instructed its advisers to begin preparing a defence against a new takeover approach. The bid interest raises the possibility of another major British company going to an overseas rival after last year&#8217;s sale of Cadbury to US firm Kraft Foods.</p>
<p>It is also thought that a new offer by Johnson &#038; Johnson could spark a bidding war for Smith, with other healthcare firms such as Biomet, Stryker and Zimmer also expected to enter the fray. Biomet is already rumoured to be mulling a tie-up with Smith, although it is not yet thought to have made a formal approach.</p>
<p>Hull-based Smith, which is more than 150 years old, makes more than 1,000 products for operations in 32 countries, specialising in joint replacements, the treatment of hard-to-heal wounds and products for use in endoscopy operations.</p>
<p>It is the world&#8217;s largest maker of products for arthroscopy, in which joints are operated on through a small incision. The group, which started life as a chemists&#8217; shop, recorded sales of $3.8 billion (£2.5 billion) in 2009 and is the UK&#8217;s largest &#8220;medtech&#8221; specialist.</p>
<p>Johnson &#038; Johnson has a medical devices division and owns a number of well-known UK household brands, including Listerine, Sudafed and Benecol. No-one from Smith &#038; Nephew could be contacted to comment on the report.</p>
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