Nestle May Sell Its Stake In L’Oreal

The market is currently abuzz with rumors that Nestle (ADR) (OTC: NSRGY) is trying to takeover L’Oreal (ADR) (OTC: LRLCY). Reportedly, Nestle is trying to buy out Lilian Bettencourt. Lilian is L’Oreal’s biggest shareholder.

However, Nestle is expected to sell its stake in cosmetic giant L’Oreal, instead of buying more, as markets are skeptical of any alliance between the food major, and cosmetic giant. Under an agreement, Nestle cannot acquire more L’Oreal shares until six months after the death of Bettencourt. However, Nestle is free to sell its stake anytime it wants.

Some analysts believe that eventually Nestle will sell its stake to concentrate on the food business.