Novartis may have to increase Alcon offer

Novartis may have to increase its buyout bid for Alcon after a corporate governance expert advised Alcon's Independent Director Committee (IDC) that its approval was needed for the deal.

The IDC has dismissed the Novartis bid to buy the 23 per cent stake held by minority shareholders for $153 per share, as inadequate. That figure has since dropped to $136.78, representing a discount of some 25 per cent on the $180 per share it is paying for Nestle's 52 per cent stake in the company. The IDC also pointed out that Alcon's performance remained strong, exceeding analyst expectations in the past two quarters since the merger proposal.