The move to break up digital technologies and put it inside enterprise under the CTO office, along with the surgica robotics RIf and investment in cornerstone robotics might suggest they’re eyeing a potential spinoff of surgical? Or is anyone reading it differently?
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This rumor was floating around a year ago. It is an interesting idea. GE got a lot of value from splitting into 3 companies - maybe MDT wants to take industry lessons learned and pivot more quickly with (yes actually) less disruption. A bit of undoing of the MDT/COV merger.
@ec wouldn’t it make sense if Hugo is no longer needed?
@OP MDT will be having their investor meeting around mid December. I guess any spin offs will escalate after that. Including (if needed) massive layoffs. Though layoffs would run the company down to the ground. I'm already at breaking point.
I haven’t given this potential any thought. Only been in surgical since march. I wouldn’t be surprised if Elliot pushed for this given the slow Hugo growth and the CSR investment. Minimed took a couple years to come to pass so it would take a while to actually happen. I’d probably be retired by then. I’ll have to ask if anyone is hearing about this around the office.
I wouldn’t put anything past this team but it wouldn’t make sense. They just invested 700 million into another robot.
It’s definitely the aspirations from some of the surgical leadership - they would love to have a CEO or CFO title.
Whats left to keep?. MDT has cherry picked campuses and taken control of the MFG sites . Anything considered administrative is being outsourced. LCOV leaderships has been replaced by MDT leaders, end of year RIF rumor's .... Not looking good for us Surgical folks
great idea
Yes, I’m hearing rumors of a surgical spinoff, similar to MiniMed. Was just discussing this with a major supplier who’s a little concerned. This might be a very good thing for Medical Surgical and would allow the company to write off Hugo without taking a typical 1 time multi billion dollar expense and would release MDT from multiple mesh and antitrust lawsuits. Surgical could continue to own Hugo, lawsuit risk and the debt, but being a smaller company, less of a target going forward.
That's how I'm reading it. Timing TBD? Would they announce separation at year end aligned with Elliott management update?