Bloomberg: Nestle looking to slash L'Oreal stake

|About: Nestle S.A. ADR (NSRGY)|By:, SA News Editor

Bloomberg reports Nestle (NSRGY) is "exploring ways" to slash its 29% stake in cosmetics giant L'Oreal (LRLCF), which has a current value of $30B.

Sources state Nestle has "raised the issue to L’Oreal at the highest levels and both sides have discussed the matter with banks." However, some caution the sale process could take years to fully transpire, given the size of the stake and complex ties with the Bettencourt family (owns 31% of L'Oreal).

Nestle, which has $6B+ in cash and shor-term investments, reportedly "doesn't have an immediate plan" regarding how to spend the proceeds from a sale.

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