Smith & Nephew rejects takeover bid

Smith & Nephew has rejected an approach from US rival Johnson & Johnson. Reports at the weekend revealed the UK firm turned down an indicative offer worth £7 billion, although it is understood the US firm was still considering whether to return with a higher offer.

Hull-based Smith & Nephew has not made any comment on a wave of recent bid speculation.

Johnson & Johnson's approach valued Smith & Nephew at 750p a share, but this was rejected on the grounds it substantially undervalued the firm, it was reported.