Novartis aims for full Alcon takeover
Tuesday, 5 January 2010
ZURICH, Jan 4 (Reuters): Swiss drugmaker Novartis wants to buy the rest of the world's biggest eye care firm Alcon for $39.3 billion, including Nestle's majority stake, to help it diversify away from prescription drugs.
Novartis said Monday it was exercising an option to buy a 52-per cent stake in Alcon from Nestle for $28.1 billion, boosting its holding to 77 per cent after it bought an initial 25 per cent stake from the world's largest food group in 2008.
Novartis, which was widely expected to snap up the Nestle stake as soon as its option allowed, also plans to buy out the 23 per cent held by minority shareholders for $11.2 billion, ending uncertainty over whether it would seek full control.
Novartis and rival drugmakers such as GlaxoSmithKline and Sanofi-Aventis are pushing into areas like consumer healthcare and generics as they face the biggest loss of patent protection in history.
To win full control of Alcon, analysts predict Novartis will have to increase its offer to minorities of 2.80 Novartis shares for each remaining Alcon share as it amounts to $153 per share compared with the $180 agreed with Nestle.
Novartis said Monday it was exercising an option to buy a 52-per cent stake in Alcon from Nestle for $28.1 billion, boosting its holding to 77 per cent after it bought an initial 25 per cent stake from the world's largest food group in 2008.
Novartis, which was widely expected to snap up the Nestle stake as soon as its option allowed, also plans to buy out the 23 per cent held by minority shareholders for $11.2 billion, ending uncertainty over whether it would seek full control.
Novartis and rival drugmakers such as GlaxoSmithKline and Sanofi-Aventis are pushing into areas like consumer healthcare and generics as they face the biggest loss of patent protection in history.
To win full control of Alcon, analysts predict Novartis will have to increase its offer to minorities of 2.80 Novartis shares for each remaining Alcon share as it amounts to $153 per share compared with the $180 agreed with Nestle.