Navigation

Novartis moves a step closer to Alcon buyout

Swiss drugs company Novartis is pushing on with its controversial buyout of Alcon after completing the acquisition of Nestlé stock in the United States eyecare group.

This content was published on August 26, 2010 - 12:09

Novartis, which now has a 77 per cent stake in Alcon and a majority on its board, has been trying to buy the remaining 23 per cent in Alcon since exercising its option to buy the food group’s stake in January.

Alcon’s Independent Director Committee has dismissed the Novartis offer for the minority stake as low and repeated on Thursday it could take legal action to secure a better price.

Novartis is offering Alcon minority shareholders 2.8 Novartis shares for each Alcon share, an offer that is around 16 per cent lower than the average price of $168 (SFr173 ) it paid to Nestlé in an all-cash deal worth $38.7 billion.

Basel-based Novartis has said it has made a “full and fair” offer and that its bid must be fair to both Novartis and Alcon shareholders.

Nestlé acquired Alcon in 1977 for $280 million.

swissinfo.ch and agencies

This article was automatically imported from our old content management system. If you see any display errors, please let us know: community-feedback@swissinfo.ch

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

Share this story

Change your password

Do you really want to delete your profile?