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.
Abbott chief executive Miles White said last month that the company would be interested in making acquisitions in the medical device sector.
