Deals
L’Oreal Advances on Prospects for Sale of Nestle’s Holding
- Liliane Bettencourt’s death sparks speculation change may come
- Activist Dan Loeb has urged Nestle to sell 23 percent stake
L'Oreal cosmetic products sit on display in a department store in Paris, France.
Photographer: Marlene Awaad/BloombergThis article is for subscribers only.
L’Oreal SA shares surged the most in seven years on speculation that the death of the founding family’s matriarch, Liliane Bettencourt, could clear up the cosmetics maker’s ownership through a takeover or a buyback.
Bettencourt’s death raises questions about the stake Nestle SA has held in the French company for more than four decades. Her passing makes it more likely that the Swiss food giant will someday sell that 23 percent holding, worth about $28 billion, to L’Oreal, according to analysts. Another possibility is that L’Oreal attracts a takeover bid.