Nestle Not Pressed On L'Oreal, No Plan To Change Alcon Terms
February 19 2009 - 4:21AM
Dow Jones News
Nestle S.A. (NESN.VX) is in no hurry to act on its large stake
in French cosmetics company L'Oreal S.A. (12032.FR) and doesn't
plan to change the terms of the sale of eye-care company Alcon Inc.
(ACL), Chief Financial Officer James Singh said Thursday.
"We're not in a hurry on L'Oreal. Our commitment remains
unchanged during the lifetime of Madame Bettencourt," Singh said
during a call with analysts, referring to Nestle's stake of around
29% and its lockup agreement with the other major L'Oreal
shareholder, the French family Bettencourt which owns around
30%.
Nestle, the world's largest food and beverages company, and the
French Bettencourt family have a standstill agreement on L'Oreal,
part of which will expire April 29. Nestle will then be able to
sell part or all of its stake. The treaty also includes a ban on
any increase in either partner's stake as long as L'Oreal heiress
Liliane Bettencourt is alive.
Singh said Nestle doesn't plan to re-negotiate the terms of the
divestement of Alcon to Novartis AG (NOVN.VX).
Under a deal agreed in 2008, Nestle has the right to sell the
remaining 52% stake in Alcon between January 2010 and July 2011 to
Novartis at either $181 per Alcon share or at an average share
price during the week preceding the transaction plus a premium of
20.5%.
A recent decline in Alcon's share price has led to speculation
the agreement may be tweaked.
Earlier Thursday, Nestle reported a 69% rise in 2008 net profit
to 18.04 billion Swiss francs ($15.4 billion), boosted by a $10.4
billion gain on the first tranche of the Alcon divestment.
Company Web site: http://www.nestle.com
-By Martin Gelnar, Dow Jones Newswires; +41 43 443 8042;
martin.gelnar@dowjones.com