The afternoon deal

January 4, 2010

UNPLUGGED/The Novartis deal to buy Alcon from Nestle wasn’t a surprise, but $39 billion does grab your attention. Add in minority shareholders potentially getting a raw deal and wrap it all up with the question of what Nestle does with the proceeds and it makes the top story of the day. A Nestle share buyback is in the works but is the company eyeing Cadbury? Questions abound.

The Reuters wrap up of the deal is here. A WSJ blog makes the case that Nestle now has the cash and incentive for a Cadbury bid, but a Bloomberg story pours cold water on the idea.

“Publicly NestlĂ© has said there are no big deals on the horizon but that it might do bolt-on acquisitions. So they wouldn’t be interested in the whole of Cadbury, but it is plausible that they could do a consortium bid – with Hershey taking the chocolate business and NestlĂ© taking the chewing gum and candy,” Warren Ackerman, an analyst at Evolution Securities, tells The Guardian.

Here are other takes on this “eye-catching” deal:

Novartis-Alcon: Not Really a Consumer-Health Deal

Does Alcon Deal Stack Up For Novartis?

and not to be outdone by the hard news: *sigh* I will miss free Nestle ice cream at Alcon company picnics

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see