Biotech Values

[DewDiligence]

Novartis may still end up buying the Alcon stake. Nestle can require Novartis to buy the shares at a 20.5 percent premium to Alcon’s stock price when the option is exercised, up to a maximum of $181. A Nestle spokeswoman declined to comment on whether it plans to exercise that option.

Whoever asked Nestlé to comment on this is retarded. If NVS has not already exercised its call option @$181/sh (which now seems unlikely), the probability that Nestlé will exercise its put option is 100.00%.

NVS is preparing for the Nestlé put to be exercised as early as Jan 2010:
http://www.reuters.com/article/rbssHealthcareNews/idUSB17590520090602