Shares in the world’s biggest cosmetics maker L‘Oreal rise as much as 2.8 percent, reversing recent sharp losses, after the group’s chief executive officer says L‘Oreal has the financial firepower to enable it to buy back the 29.5 percent stake in the group held by Nestle.
L‘Oreal CEO Jean-Paul Agon tells Le Monde newspaper that L‘Oreal is “preparing itself for all the possible options” as restrictions on Nestle selling down its holding ends in April.
“It would be a good deal,” he adds, saying the shares could be cancelled if L‘Oreal repurchases them, which would thereby boost earnings per share for remaining shareholders.
“The stock is up on the Nestle stake comments, there are big expectations around this,” a Paris-based trader says.
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