BUZZ-Synergy Health: worst day in 6.5 yrs on Steris deal fears

** Health outsourcer Synergy Health (LSE: SYR.L - news) dives c.18 pct, its biggest one-day drop since Oct (HKSE: 3366.HK - news) 2008 in heavy volume amid jitters over Steris Corp (NYSE: STE - news) 's proposed takeover of co

** Steris, based near Cleveland, buying out UK's Synergy Health, with combined co to be managed from Ohio - among latest attempts at inversion-type deal, despite Treasury Dept crackdown in Sept slowing inversion deal-making

** These deals typically involve a US co buying a smaller foreign rival, then taking on its nationality for tax purposes, while many core operations remain in US

** US group AbbVie (Xetra: 4AB.DE - news) pulled plug on deal to buy UK's Shire (Xetra: S7E.DE - news) after the changes to the US tax rules

** Olivetree flags Synergy/Steris deal into in-depth review territory with US anti-trust regulators & judgement expected soon

** Olivetree highlights FTC hearing scheduled today & although non-public & impossible to confirm topic, market believes this is to review rule on Synergy transaction

Link: http://1.usa.gov/1JVe2KM

** "The rumour is that the FTC is preparing to sue-to-block the transaction, which is the mechanism US regulators use to stop M&A transactions," Olivetree says

** One market maker points to Olivetree note as catalyst for share-price drop

** Stock easily top faller on FTSE 250 index in trading volume at c.3.5x its 90-day daily avg in c.2 hours (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)