Boston Scientific Corporation (NYSE: BSX) shares popped shortly after market open on Monday after speculations that rival, Stryker Corporation (NYSE: SYK) will reportedly offer a takeover bid, first reported by The Wall Street Journal, citing sources familiar with the matter.
Boston Scientific shares rose by 7.42 percent, while Stryker shares fell by 5.17 percent. Boston Scientific released a statement regarding the takeover attempt, but its shares were halted prior to that announcement.
"Boston Scientific … is aware of reports speculating that the company has been approached by Stryker Corporation regarding a potential acquisition." the company said in a filing with the Securities and Exchange Commission. "Consistent with its practice, the Company does not comment on market rumors or speculation."
A Stryker spokesman said due to company policy, the company does not comment on potential mergers and acquisitions. A Boston Scientific spokeswoman told CNBC ahead of the the company's official statement that it does not comment on rumors or speculation.
The potential merger could combined the two medical device manufacturers into a combined market capital of more than $110 billion, said the sources. The combined value will allow the two to compete better against Medtronic PLC (NYSE: MDT), who currently holds a market value of $118.06 billion.
Stryker’s expertise in orthopedics, neurotechnology and spinal procedures will combine with Boston’s cardiovascular operations and its rhythm management, which is for heart monitoring products.