BUZZ-Smiths: FT reports activist firm ValueAct has stake in co

** Smiths Group (Other OTC: SMGKF - news) seen up 3-5 pct after FT reports U.S. activist investor ValueAct has stake in the British engineering conglomerate

** The daily quotes sources as saying that ValueAct views Smiths' medical devices unit and its John Crane seals unit as potential M&A targets (http://bit.ly/1SWRfze)

** ValueAct could not be immediately be reached for comment outside of regular business hours in the U.S.

** Spokesman for Smiths declines to disclose individual shareholdings below statutory disclosure levels

** Smiths said in September it was not planning to sell the ailing medical unit, where suffering margins have prompted calls for a sale; shares have slid 9 pct since

** Based on Monday's close, Smiths would have to rise c.17 pct to reach StarMine intrinsic value estimate

** The report on ValueAct a few days after the activist fund reported a stake in Rolls-Royce (RM (LSE: RM.L - news) : esha.vaish.thomsonreuters.com@reuters.net)