Biomet Inc. (NDAQ:BMET) moved up 3% today after Smith & Nephew (NYSE:SNN) addressed rumors that it was contemplating a merger/buyout of the company. According to a 6K filing made with the SEC:

"Smith & Nephew plc (LSE: SN, NYSE: SNN) is constantly looking at opportunities to maximise shareholder value, including looking at potential strategic acquisitions. In response to recent press speculation, the Company can confirm that it has held very preliminary talks with the US medical devices company, Biomet Inc. No agreement has been reached, and there can be no assurance that any transaction will be proposed or completed.  Smith & Nephew does not intend to make any further comment, or respond to any enquiries, unless or until there is further information to report." (Read More)

Meanwhile, Biomet said that it remains divided on any third party deals, after hiring Morgan Stanley & Co. to explore strategic alternatives last April. If the company does decide to go through with a merger, it would likely be at a premium to today's prices. This makes Biomet a stock worth watching over the next few weeks as the companies mull over the details of a possible merger.

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