By Christopher P. Singer --
In April 7, 2008 press releases from Novartis AG and Alcon Inc., the companies announced that Novartis has reached an agreement with Nestlé S.A. which provides Novartis with the right to acquire majority ownership of Alcon Inc. Nestlé currently owns 77% of the outstanding shares of Alcon. The structure of the agreement allows for Novartis' acquisition of Alcon through two purchases from Nestlé. The initial purchase step, which is expected to be completed in the second half of 2008, calls for Novartis to acquire a 25% stake in Alcon (about 74 million shares) at a per share price of $143.18 (about $11 billion). The second purchase step provides option rights for Novartis to acquire, and Nestlé to sell, the remaining 
52% Alcon stake held by Nestlé between January 2010 and July 2011. The maximum share price for the second purchase is reported to be $181.
Alcon is the world's largest and most profitable eye care company with 2007 annual sales of $5.6 billion. Alcon researches, develops, and manufactures a variety of pharmaceutical, surgical and consumer eye care products used to treat diseases, disorders and other conditions of the eye.
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