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MDT
CNBC
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Medtronic makes two key additions to its board. How activist Elliott can build shareholder value

1. Medtronic appoints new directors in response to Elliott's engagement. 2. Formed Growth and Operating Committees to stimulate growth and improve margins. 3. Recent product developments may enhance long-term growth prospects. 4. Company's stock underperformed, with low revenue growth over the past decade. 5. Spinoff of diabetes business expected within 15 months to focus on core operations.

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FAQ

Why Bullish?

The company's strategic changes and product launches signal potential strong future growth. Historical examples show that proactive governance can lead to turnaround success in stagnating companies.

How important is it?

The article discusses significant board changes and strategic restructuring, critical for MDT’s growth trajectory.

Why Long Term?

Strategic changes will take time to reflect in financial performance. Past similar actions in other firms resulted in significant long-term market value increases.

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