If there was a catch phrase for acquisition crazy 2014, it would be "inversion deal." The lure of escaping high U.S. tax rates and regaining access to earnings trapped overseas inspired the big pharma megamerger talks between Pfizer and AstraZeneca. While that deal failed to materialize, we have a potential new U.S.-UK connection brewing, and this one could become an all out bidding war.

Medical device maker Smith & Nephew (NYSE: SNN) has potentially caught the eye of a pair of rival American suitors, Stryker (NYSE: SYK) and Medtronic (NYSE: MDT). No offers are imminent from either company and their actual level of interest is unclear, but the market is already excited sending shares of Smith & Nephew 20% higher over the last few weeks.

In this episode of Market Checkup, the Motley Fool's health care focused investing show, analysts David Williamson and Michael Douglass discuss the deal rumors and why the deal is more important for one of the two would-be acquirers.



David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool owns shares of Medtronic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.