Novartis finally gets Alcon; vildagliptin now available for elderly type 2 diabetics in UK

In what looks to be the last hurdle for Swiss drug major Novartis (NOVN: VX) to take full control of eye care specialist Alcon (NYSE:ACL), the latter’s independent shareholders have approved the merger. Under the terms of the merger, Alcon shareholders will receive 2.9228 Novartis shares or American Depositary Shares plus a cash payment of $8.20 for each Alcon share. Completion is subject to approval by the Novartis shareholders, which will vote today (April 80. Following completion of the merger, Alcon will terminate its listing on the New York Stock Exchange.

It will be recalled that, in 2008, although Alcon’s majority shareholder Nestle agreed to sell out to Novartis for $180 a share (total $28.1 billion), giving the Swiss drugmaker a 77% stake, independent shareholders were offered a lower price - $153 - that they believed was unfair. This but was re-negotiated last year to a value of around $171 a share plus a contingent value amount (The Pharma Letter December 15, 2010).

The Alcon shareholders also re-elected Daniel Vasella, Cary Rayment, Thomas Plaskett, Enrico Vanni, and Norman Walker to the board of directors for the period between the Annual General Meeting of Shareholders and the completion of the merger. Shareholders also voted to grant a discharge to the current and former members of the board of directors, approved the 2010 business report and approved KPMG as auditor.