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Smith & Nephew Shares Surge as Cevian Takes Stake in Medical Devices Group

Shares of Smith & Nephew (LON) experienced a significant rise on Thursday following the announcement that activist investor Cevian Capital has acquired a stake in the company.

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Cevian Capital, based in Stockholm, disclosed that it now holds a 5% interest in Smith & Nephew, a renowned manufacturer of orthopaedic implants and prosthetics. This move comes at a time when Smith & Nephew’s stock has declined by more than 50% from its peak in 2020, partly influenced by changes in procurement practices in China and recent executive-level turnover. The company reported revenue of $1.39 billion for its fiscal first quarter, falling short of market estimates.

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According to a statement from a Cevian partner reported by Reuters, the investor sees potential in enhancing Smith & Nephew’s operational performance to create long-term shareholder value.

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Cevian Capital has a track record of investing in various businesses, including UBS, CRH (NYSE), and Pearson, highlighting its strategic approach across different sectors.

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