Medtronic to add two directors, form panels after Elliott takes large stake, WSJ reports

Aug 19 (Reuters) - Medtronic MDT.N will add two new directors to its board and form new committees after Elliott Investment Management became one of its largest shareholders, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Shares of the medical-device maker gained 2.4% in premarket trading and the stock has risen more than 16% so far this year.

The company will add veteran med-tech executives John Groetelaars and Bill Jellison as independent directors, the report said.

Medtronic is scheduled to announce quarterly results later on Tuesday.

It also plans to form new special committees, helmed by CEO Geoff Martha to focus on growth and operations, that will include the new directors.

Medtronic has been holding friendly talks with Elliott around how to boost its valuation and build on ongoing plans to focus on core assets, according to the report.

One of the new committees to be formed will look for tuck-in mergers and acquisitions, research and development investments and potential divestitures, while the other will look for ways to boost earnings growth, the report said.

Elliott is now one of Medtronic's biggest investors, after an engagement led by Elliott partner Marc Steinberg, the report said, citing people familiar with the matter.

The medical device maker is also now set to host an investor day event in mid-2026, where it expects to detail the new committees' progress, the report said.

Medtronic and Elliott did not immediately respond to Reuters requests for comment.