Replies to post #61147 on Biotech Values

[DewDiligence]

Quiz re NVS-Alcon buyout:

Q1: Why is the deal being implemented in two steps? (Non-tautological answers only, please :-) )

Q2: Why didn’t NVS furnish any estimates of cost synergies to accrue from the acquisition?

[DewDiligence]

Alcon’s minority shareholders approve NVS acquisition:

http://finance.yahoo.com/news/Alcon-Shareholders-Approve-bw-3249883798.html?x=0&.v=1

The consideration is 2.9228 shares of NVS stock plus $8.20 in cash, which comes to $171/sh at NVS’ current share price.

Paradoxically, Alcon’s minority shareholders got paid slightly more than the average price the controlling shareholder, Nestlé, got from NVS in its two-step sale, although minority shareholders did have to wait considerably longer to get paid.

Today’s shareholder vote marks the final step of what has been a 3-year period to consummate this deal.