In more than two years, CareFusion Corp shares declined the most after Smiths Group said that announced discussion on the sale of its medical equipment unit had failed.
The San Diego-based CareFusion shares fell as much as 10% to USD35.06. The company shares traded lower than 9% at 12:45 pm in New Year. This valued CareFusion at USD7.8 billion. Smiths Group shares fell as much as 6.2%, the biggest since March.
Last May 31, Smiths said that it received a letter of approach for its medical equipment division. The said division manufactures critical-care and surgical products for healthcare institutions. A day earlier before the announcement, The Financial Times reported that the London-based technology company was reviewing and considering a GBP2 billion deal. . The report added that possible bidders for the medical equipment division of Smiths included CareFusion. The latter is an American firm that makes medical pumps, medicine dispensers and ventilators.
Smiths rejected the GBP2.45 billion offer for its division last February 2011. According to people familiar with the matter at the time, Smiths valued the unit at GBP3.1 billion.
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