Nestle is selling its 10% stake in Swiss fragrance and flavour maker Givaudan, in what is seen as an orchestrated effort to narrow its focus on core operations.
The company cut its sales outlook earlier this year and said it would dispose of underperforming businesses to slim down its extensive portfolio, although there has been long running suggestions that they are also trying to buy Italian chocolate manufacturer Ferrero.
Traders said the Givaudan sale managed by Goldman Sachs through an accelerated book building was being offered at a price range of 1,150-1,170 Swiss francs a share.
This values the entire stake at as much as 1.08 billion Swiss francs (€870 million, or $1.20 billion).
Nestle, the Swiss multinational food and beverage company headquartered in Vevay, is the largest food company in the world measured by revenues.
Chief Executive Paul Bulcke said in October that Nestlé wants to fix or sell a "sizable percentage" of its underperforming brands and businesses.
Nestlé are expected to sell such assets as its PowerBar fitness bar business, as well as some smaller water brands.
The Wall Street Journal have reported upon speculation that the company would even consider selling its 29.8% stake in French cosmetics company L'Oreal.
There have thus far been no public comments made on behalf of Givaudan.
© 2013 - European Supermarket Magazine by Enda Dowling
