Medtronic PLC (MDT) shares surged 5.20% in pre-market trading on Tuesday following reports that the medical device maker is set to make significant changes to its board and corporate structure. These developments come in the wake of activist investor Elliott Investment Management becoming one of the company's largest shareholders.

According to sources familiar with the matter, Medtronic plans to add two new independent directors to its board: John Groetelaars and Bill Jellison, both veteran med-tech executives. The company is also forming two new special committees focused on growth and operations, which will be led by CEO Geoff Martha and include the new directors.

The first committee will concentrate on identifying tuck-in merger and acquisition opportunities, research and development investments, and potential divestitures. The second committee will focus on ways to boost earnings growth. These changes are the result of friendly talks between Medtronic and Elliott, aimed at enhancing the company's valuation and building on ongoing plans to focus on core assets.

Investors are reacting positively to these strategic moves, seeing them as potential catalysts for improved performance and shareholder value. The pre-market rally suggests that the market is optimistic about Medtronic's future direction under this new influence from Elliott Investment Management.