, Columnists
A Historic Moment for L'Oreal... and Nestle
Swiss giant now has three potential buyers for its stake.
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The death of heiress Liliane Bettencourt should force L'Oreal SA and its major shareholders to agree on the best ownership structure for the French cosmetics group. This historical juncture provides Nestle with an opportunity for a graceful exit from its 23 percent holding.
An agreement between the Bettencourt family, which owns 33 percent, and Nestle not to increase their stake in L'Oreal expires in six months. In theory, that opens the way for Nestle SA to buy all of L'Oreal. But as Gadfly has argued, this would be a huge and risky deal.