On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said, "It's killing me that I didn't see this coming" because it was an obvious defensive move as Stryker attempts to keep up with its competition.
If Stryker performed what's referred to as an "inverted merger," it would become a U.K. entity and benefit from a lower tax rate. And as the show's co-host David Faber pointed out, it would allow Stryker to make acquisitions of U.S. companies without paying repatriation taxes, since it would no longer be a U.S. entity.
"It's a win-win; I think it happens," Cramer said of the proposed deal between Stryker and Smith & Nephew.He went on to say that the stock market seems to like these types of deals too, since both stocks -- the acquirer and the acquired -- move higher. This in turn makes other companies want to perform similar deals. Stryker has denied this report. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell >>Read More: Union President's Final Act: Organize Airbus, Ramp Up Boeing 777X >>Read More: Bank of America Exec Preaches Gospel of 'Too Big to Fail' Banking >>Read More: Equity Pullback in the Cards but Outlook Will Brighten Later This Year >>Read More: Workday Surges: What Wall Street's Saying
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