Solventum (SOLV) has a new majority shareholder: Nelson Peltz‘s Trian Fund Management. According to an exclusive Bloomberg report, Trian is now one of the largest shareholders in the healthcare company. Solventum, which was spun off from 3M (MMM) earlier this year, focuses on delivering innovative healthcare solutions. The company currently has a market cap of $9.4 billion. Shares of SOLV rose following the news. However, Trian’s exact stake in Solventum has not been disclosed.
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Why Is Trian Interested in SOLV?
Trian wants to unlock shareholder value for SOLV and believes that the company should accelerate organic growth, restore margins, and consider simplifying its portfolio through the sale of its assets.
Trian stated to Bloomberg, “Trian looks forward to engaging constructively with Solventum’s management and board.” The activist shareholder believes that these changes should help the company reduce its debt and initiate a dividend.
Solventum’s Response to Proposed Changes
Solventum, which has four main business categories—including medical and dental supplies, filtration, and information management software—has lost a third of its value since the spinoff. However, the company welcomes the opportunity to engage with Trian.
Solventum’s Ownership Overview
After the spinoff, 3M still holds about a 20% stake in Solventum. Additionally, over 20% of Solventum’s shares are owned by institutional investors, which shows there’s strong confidence in the company’s future from major investors.
Is SOLV a Good Stock to Buy?
Analysts remain sidelined about SOLV stock, with a Hold consensus rating based on five Holds and one Sell. Over the past year, SOLV has declined by more than 20%, and the average SOLV price target of $60.50 implies an upside potential of 11.7% from current levels.
