Alcon deal closes
This article was originally published in The Tan Sheet
Executive Summary
Novartis closes its acquisition of a 25 percent stake in Alcon as part of an agreement with Nestle announced in April. Nestle said previously it would sell 74 million shares of its Alcon eye-care product firm to Novartis at $143.18 a share (1"The Tan Sheet" April 14, 2008, In Brief). Novartis purchased the stake in Alcon for approximately $10.4 billion in cash - $200 million less than previously announced, to account for the "Alcon dividend paid in May 2008 for these shares to Nestle rather than Novartis," the Switzerland-based firm says. There is also an optional second step, which would allow Novartis to acquire the remaining 52 percent stake held by Nestle between January 2010 and July 2011 for a price not exceeding $28 billion. Novartis says completion of the optional second step would make Alcon a "majority-owned subsidiary of Novartis, strengthening a portfolio focused on growth areas of health care"...