Medtronic to change board as Elliott takes stake - report

[Medtronic at Canada Headquarters in Brampton, Ontario, Canada.]
JHVEPhoto/iStock Editorial via Getty Images

_UPDATE: ADDS COMPANY CONFIRMATION_

Medtronic (NYSE:MDT [https://seekingalpha.com/symbol/MDT]) will add two new directors and establish additional committees after Elliott Investment Management emerged as one of its largest shareholders.

The move was first reported by the Wall Street Journal_._

Elliott's exact stake size in Medtronic is currently unknown. The two parties have been holding friendly discussions around how to boost the company’s valuation and build on ongoing plans to focus on core assets, the _WSJ _report said.

To reinforce its focus on portfolio strategy, operations, and capital allocation, Medtronic’s board has formed two special committees. The Growth Committee will oversee M&A, R&D investments, and divestitures, including the planned Diabetes business separation. The Operating Committee will support initiatives to enhance efficiency, expand margins, and accelerate earnings through improvements in manufacturing, supply chain, and operations.

The medical device maker will also add veteran med-tech executives John Groetelaars and Bill Jellison to its board as independent directors. Groetelaars and Jellison will be nominated to stand for election to the board at Medtronic's 2025 annual general meeting of shareholders.

CEO Geoff Martha will serve as chair of both of the newly formed committees. Medtronic will host an investor day in mid-calendar year 2026 at which the company will discuss the work of both the committees, including its go-forward strategic priorities and financial algorithm.

Elliott Partner Marc Steinberg said, "Our decision to become one of Medtronic's largest investors was driven by our strong conviction that the company is entering a new chapter of exceptional value creation defined by accelerating growth, operational improvement and enhanced strategic clarity.”

Medtronic's chief executive officer and chairman of the board, Geoff Martha, said [https://seekingalpha.com/pr/20204564-medtronic-announces-board-appointments-and-shareholder-value-creation-initiatives-to-advance], “We appreciate our productive dialogue with Marc Steinberg and the Elliott team. The durable growth drivers now taking hold across several of our businesses are strengthening Medtronic's trajectory and reinforcing our conviction in the company's future. The Board believes Medtronic has the right strategies to build on this momentum and deliver sustained, superior returns for investors over the long-term."

MDT shares fell 2.4%, erasing prior gains.

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