Drugmaker Abbott Laboratories is preparing a bid for St Jude Medical that would value the medical device maker at about $25 billion (€22bn), the Financial Times reported.
Abbott has been working with advisers for several weeks to line up financing for a cash and stock bid, the FT said, citing people familiar with the matter. The Minnesota-based company had a market value of about $19.5 billion as of Wednesday’s close.
St Jude’s shares jumped 15 per cent to $79.69 in premarket trading on Thursday.
Officials at St Jude and Chicago-based Abbott were not immediately available for comment on the report.
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Abbott chief executive Miles White said last month that the company would be interested in making acquisitions in the medical device sector.
