Investing.com – Shares in medical device maker Smith & Nephew (LON:) rose on Thursday after activist investor Cevian Capital disclosed a stake in the group.
A filing showed that Stockholm-based Cevian had built up a 5% stake in Smith & Nephew, the maker of orthopedic implants and prosthetics, which has lost more than half its share value since hitting a record high in 2020.
Changes in purchasing practices in China, as well as a series of changes at board level, have dented sentiment around Smith & Nephew. The 100-listed company’s first-quarter revenue of $1.39 billion was below expectations.
Citing a statement from a partner at Cevian, Reuters reported that the investor sees the potential to create “long-term value” in Smith & Nephew by improving operating performance.
Cevian has also taken stakes in a range of companies, including Swiss bank UBS, Irish building materials company CRH (NYSE:) and education publisher Pearson.
