Novartis finally reaches agreement with Alcon's minority shareholders for full control

Ending a long struggle to gain 100% control of eye care specialist Alcon (NYSE: ACL), Swiss drug major Novartis (NOVN: VX) has announced a final agreement in the price at which it will purchase the Alcon minority stake.

In 2008, Novartis acquired a minority 25% stake in Alcon from Nestle, and subsequently gained majority control in a further deal with Nestle, bringing its ownership position up to 77%. It paid $180 per share, or $28.1 billion for this. However, independent shareholders were offered a lower price - $153 per Alcon share - that they felt was unfair and inadequate, and have held out until now (the Pharma Letters passim).

Novartis will pay each Alcon shareholder equivalent to 168 Swiss francs ($171.2) per share based on the original 2.8 Novartis shares plus a contingent value amount (CVA) in cash to bring the value to 168 francs. Novartis has reactivated its share buyback to minimize flowback.