It came as no surprise when on January 4 Novartis AG announced it was exercising its option to purchase Nestlé's remaining 52% stake in eye-care group Alcon Inc. for $28.1 billion, or $180 per share. The Swiss Big Pharma had as good as committed to do so back in April 2008, when it bought the first tranche of 25% from Nestlé SA for $10.4 billion, or $143 per share. [See Deal] At the time, Novartis agreed to a "put" clause allowing Nestlé to compel it to buy the additional shares between early-2010 and mid-2011 at a price not exceeding $181 per share, or roughly $28 billion.
Given that Alcon's shares fell to less than half of their April 2008 value at the end of that year,...
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