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Novartis Seals Alcon Takeover After Cash Deal With Minority Shareholders

From Canadian Press DataFile (December 15, 2010)

GENEVA -- Swiss pharmaceutical company Novartis AG says it has reached a deal with minority shareholders of Alcon Inc. that will allow it to complete its takeover of the eye care company.

Novartis says the cost of acquiring the remaining minority stake of 23 per cent will be US$12.9 billion.

The Basel-based company says it will pay Alcon minority shareholders the equivalent of $168 per share.

It says the payment will be made up of 2.8 Novartis shares plus the difference in cash. If 2.8 Novartis shares are worth more than $168, the company will reduce the number of shares it transfers.

Alcon minority shareholders had rejected Novartis’ previous offers, claiming they would have been paid less per share than the eye care company’s main shareholder, Nestle SA.


Posted: December 2010