Following the death of L’Oréal heiress Liliane Bettencourt speculation has been rife as to whether major shareholder Nestle would increase its 23 per cent holding.
Nestle bought its original stake in L’Oreal in 1974 — in what was dubbed a “white knight investment” — and this allowed Nestle to become the second largest shareholder after the Bettencourt family.
Bettencourt’s passing gave way to speculation that Nestle would increase its holding (worth approximately $US28 billion) of the company; however, Nestle CEO Mark Schneider has squashed these claims this morning, saying: “Our approach to the L'Oréal investment is currently not changing.”
In 2004 both Nestle and L’Oréal reached an agreement that neither party would increase its stakes in the company during Liliane Bettencourt’s lifetime and for six months following her death.
