Illingworth quits Smith & Nephew

BID speculation heightened around hip and knee replacement maker Smith & Nephew yesterday when the group announced that chief executive Dave Illingworth, right, will step down in April.

The 57-year-old, who has held the top job for four years, has led the company's repeated denials that it is in takeover talks. Names put in the frame by the City include US healthcare giants Biomet, Johnson & Johnson and Stryker.

Illingworth will be replaced by Olivier Bohuon, 52, who quit as chief executive of French pharma giant Pierre Fabre last month after just five months in the job.

The reignited takeover speculation came as Smith & Nephew posted better-than-expected results following a strong performance from its knee and trauma units.

The Hull-based firm said trading profits rose 9 per cent to $278 million (173m) in the final quarter on flat revenues of $1.1 billion. Analysts had been expecting profits of about 252m.

S&N's shares have leapt over 20 per cent since December when reports emerged that it was set to start informal talks with Biomet about a 15bn merger.