Executive Summary
Three seasoned value managers have identified a compelling arbitrage opportunity hiding in plain sight within the medical technology sector. Becton Dickinson's pending reverse Morris Trust transaction with Waters Corporation represents a textbook case of market inefficiency, where a $18.8 billion divestiture is trading at a massive discount to its component parts. The deal, expected to close by Q1 2026, will hand BDX shareholders approximately $65 per share in cash and Waters stock while leaving...
Key Investment Opportunity
Becton Dickinson Spin-Off Arbitrage
BDX represents a rare combination of immediate value realization through the Waters transaction and a deeply undervalued remaining business. The market is failing to properly value the $18.8 billion consideration while the pro-forma medical device business trades at less than 10x earnings despite do...
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