By Bailey Lipschultz 
(Bloomberg) --


Corporate breakups have come back in vogue, 
but only one of the two blue-chip spinoffs joining the S&P 500
Index this week found favor with investors.

By contrast, though 3M’s separation of Solventum fueled 
some optimism on Wall Street, analysts cited the unit’s heavy 
debt load as a concern. Whatever gains were envisioned have gone 
to the parent, which has climbed 7.1% from the open on March 26.
Jim Osman, founder of special situations research firm The 
Edge Consulting Group, recommends clients wait to buy either
GE Vernova is “at a fair valuation, suggesting the timing 
for action might be more favorable down the line,” Osman said “Caution is key,” he said of Solventum, given its leverage 
is higher than peers. The company has about $8 billion in debt, 
and guided for organic revenue growth between minus 2% and zero 
in 2024.


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