Zimmer offers $3bn for Centerpulse
Chicago: Zimmer Holdings on Tuesday bid about $3bn for Europe’s largest orthopaedic devices maker, Centerpulse, topping a rival offer from Smith & Nephew of Britain and raising the spectre of a trans-Atlantic bidding war. Zimmer, a maker of artificial hips and knees, is trying to outmaneuver its competitors in the $14-bn orthopaedics market, which is growing 12 per cent annually. News of the bid sent Zimmer shares down about 8 per cent on the New York Stock Exchange, where they were among the session’s biggest losers. Investors feared a bidding war would cause Zimmer to raise its offer, which could hurt earnings. JP Morgan analyst Mike Weinstein cut his rating on Zimmer shares, citing concerns over the premium Zimmer might be forced to pay to outbid the rival. Smith & Nephew’s offer for Centerpulse is worth about $2.5bn, and officials said in a statement they were reviewing the Zimmer bid.
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Online gaming strategy splits video game market
Los Angeles: In the turf war being fought to control space in the living room of the future, rivals Sony and Microsoft have made it clear that the current generation of game consoles were meant to be Trojan horses — the real pay-off would come when the machines were connected to a network. Now, as both companies unveil the Internet-based services expected to be the next big thing for the $30 billion games business, sharp differences over their strategies have emerged along with a debate about how much consumers will be willing to pay for such online offerings. Microsoft has bet big on its Xbox Live online service, unveiling new features and functions this month. It aims to lure users away from Sony's top-selling PlayStation 2 console and steal growth from Nintendo's trailing GameCube.
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