3M: Combat Arms Potential Settlement and Recent Appointments Are Key Wins for Shareholders

Various reputable media outlets report that 3M is nearing a roughly $5.5 billion settlement related to its Combat Arms earplugs. Consequently, we don't expect to materially change our $131 fair value estimate, if at all. In fact, the nearly $5.5 billion figure is very close to our $4.9 billion estimate, and well below the market estimates we've seen floating around of $10 billion-$15 billion for Combat Arms. Even so, it's still materially more than the $1 billion settlement trust 3M had initially proposed to resolve these issues.