Alcon Laboratories Inc., Nestle, Novartis deal
Novartis will acquire a 25% stake in Alcon from Nestle for $143.18 per share, or about $11 billion in cash. The price is a 4% discount to Alcon's close of $148.44 on April 4, the day before the deal was announced. Novartis will have an exclusive call option to acquire Nestle's remaining 52% stake at $181 per share, or about $28 billion. Nestle has a put option to require Novartis to purchase the remaining stake at a maximum of $181 per share. Both options commence Jan. 1, 2010, and expire July 31, 2011.
Novartis said the deal would enhance its long-term growth prospects in the eye care market. The pharma company markets eye care products through its CIBA Vision contact lens business. Novartis also markets Lucentis ranibizumab to treat wet age-related macular degeneration (AMD) outside North America. Genentech Inc. (NYSE:DNA, South San Francisco, Ca.) markets the antibody fragment in North America. ...