Case | HBS Case Collection | December 2004 (Revised April 2006)

Nestle and Alcon--The Value of a Listing

by Mihir A. Desai, Vincent Dessain and Anders Sjoman

Abstract

In response to a perceived undervaluation by the capital markets, Nestle is considering divesting a part of its ophthalmology subsidiary, Alcon, and must decide on a listing location. In the process, students are challenged to wrestle with the valuation of a conglomerate, the tradeoffs involved in listing in the United States versus Europe, and the incentive and tax consequences of that listing decision.

Keywords: Business Conglomerates; International Finance; Corporate Entrepreneurship; Markets; Taxation; Business Subsidiaries; Valuation; Food and Beverage Industry; Health Industry; Europe; United States;

Citation:

Desai, Mihir A., Vincent Dessain, and Anders Sjoman. "Nestle and Alcon--The Value of a Listing." Harvard Business School Case 205-056, December 2004. (Revised April 2006.)