The afternoon deal

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 Nestlé 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 Nestlé 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

The afternoon deal

JORDAN/Clarity is in short supply today when it comes to IPOs.  Two companies filed for inital public offerings worth $100 million and $300 million on Monday, underscoring an impression of  investors growing more comfortable with companies they may have deemed too risky in 2009.

Following the upbeat tone is aluminum giant UC RUSAL securing some heavy-weight  investors –a member of the Rothschild family as well as one of southeast Asia’s richest men– in an IPO now bumped up in value to possibly $27 billion.

But wait, not all is rosy. A top China train maker, CNR, limped in its market debut after its $2 billion IPO in Shanghai. Valued at 49 times its 2008 earnings, investors tolerance was tested and the stock closed up a weaker-than-expected 2.34 percent.