Nestle Sees No Acquisition Opportunities, Alcon Options Eyed
August 12 2009 - 4:05AM
Dow Jones News
Nestle S.A. (NESN.VX) doesn't sees any acquisition opportunities
at present, an official said Wednesday.
"There's nothing available at the right price," Nestle's head of
investor relations said in a conference call with analysts.
Nestle typically earmarks 1.5 billion Swiss francs ($1.4
billion) to CHF2 billion each year for smaller acquisitions.
Responding to questions regarding the disposal of Nestle's
majority stake in eye-care company Alcon Inc. (ACL) to Swiss
pharmaceutical company Novartis AG (NOVN.VX), Nestle's Chief
Financial Officer James Singh said this would become a topic next
year at the earliest.
"The options attached to the deal will be exercisable next
year," Singh said. Under a deal agreed in 2008, Nestle has the
right to sell the remainder of its Alcon stake, currently 52%,
between January 2010 and July 2011 to Novartis. It sold a first
tranche of 25% to Novartis in 2008.
Nestle may use the proceeds from the sale for a major
acquisition or a special dividend, analysts have said.
Company Web site: www.nestle.com
-By Martin Gelnar, Dow Jones Newswires, +41 43 443 8042;
martin.gelnar@dowjones.com