Nestlé raises $28bn from Alcon stake

Nestlé secured a multi-billion dollar boost today after selling its stake in an eye care firm it acquired for $280m (€195m) in 1977.

The agreement to sell the remaining 52% holding in Alcon to healthcare firm Novartis is expected to raise $28.1bn (€19.6bn).

The food giant said it had realised more than $40bn (€27bn) from Alcon after selling a quarter of the business on the stock market in 2002 and a further 24.8% stake to Novartis in 2008. The Swiss drugs firm held an option to buy the remainder of the company from this month.

Alcon is the world’s largest eye care company with 2008 sales of $6.3bn (€4.4bn) and annual net earnings of $2bn (€2bn). It is a supplier of contact lens solutions, as well as surgical and pharmaceutical products.

Nestlé’s fundraising will fuel speculation that it could use some of the proceeds for acquisitions, although it has yet to disclose any interest in bidding for UK takeover target Cadbury.