Novartis & Alcon

Jérémie LORRAIN & Kelly BLASCO

The takeover

INTRODUCTION

What is a Takeover?

Friendly Hostile

OVERVIEW

I. Presentation of the companies

II. Reasons of the takeover

III. Stock Market

IV. How does Novartis finance it?

Novartis

• Swiss pharmaceutical company

• Created in 1996

• 2009 turnover: $ 44,3 billion

• Employees: 100 000

Alcon

• American pharmaceutical firm

• Founded in 1945 by R.Alexander & W.Coner

• 2008 turnover: $ 6 293 billion

• Employees: 15 000

Reasons of the takeover

• 28 billion dollars

• Strengthen innovation power & diversify its range of medication

• Together they cover more than 70% of the global vision care sector

• Benefice for the shareholders, employees and patients

Stock Market - Alcon

19th February stock price : $ 159.08

15th March stock price: $162.48

Stock Market - Novartis

• 5th february: Novartis’ shares were worth 57,75 dollars

• Today: 58,35 dollars

How does Novartis finance it?

• $14 billion to be financed

• Strong cash flow

• Mix of bonds and loans

• Selling shares

Conclusion

Future success ?