Nestle sells Alcon stake

excerpt from google images

Nestle earned from selling the remaining 52% holding in Alcon to healthcare firm Novartis is expected to raise 28.1 billion US dollars (£17.4 billion).  Although it is still in the speculation stage, the food giant may use some of the proceeds for UK takeover target Cadbury. 

Per gathered information, Nestle plans to use some of the cash to extend its share buy-back programme by another 10 billion US dollars (£6.2 billion) over the next two years. They are currently returning 25 billion US dollars (£15.5 billion) to shareholders. 

Chief executive Paul Buckle added the sale would enable Nestle to concentrate on “accelerating” its development as the world’s leading nutrition, health and wellness company.  Leading brands in the Nestle portfolio include Smarties, KitKat, Perrier and Nesquik.

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1 Comment

  1. Mattias Sauer said,

    May 27, 2010 at 7:57 pm

    Novartis is “locked in” the price to buy the rest of the minority shares.
    They naturally try to play “hard” on minorities (well, you do not every day spend tens of billions of dollars) but they are confronted now with “Swiss Merger Act” (http://www.alcon180.com/?page_id=609) and “Swiss Code of Obligations” (http://www.alcon180.com/?page_id=601). This site explains it nicely.
    Now that they have to face the deal in Swiss court (http://www.alcon180.com/?page_id=243), the price discovery will push Alcon’s price up as news come out and uncertainty air clears.


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