Nestle Sets Plan For $2.4-Billion Alcon IPO

Nestle, the biggest food maker, filed to sell as much as $2.4 billion of stock in its Alcon Inc. eye-care unit, in what may be the first multibillion-dollar initial public offering in the U.S. this year.

Alcon will seek to sell a 23% stake to new investors and transfer the IPO proceeds to Swiss parent Nestle through the redemption of preferred stock, according to documents filed with the Securities and Exchange Commission.

Alcon, whose products include equipment for cataract surgery and disinfecting solutions for contact lenses, is considered by analysts to be Nestle’s fastest-growing and most-profitable unit. It had sales of about $2.75 billion last year.

The underwriters for the IPO, led by Credit Suisse First Boston and Merrill Lynch & Co., plan to market 69.75 million Alcon shares at $31 to $35 each and have set March 20 as the date to announce a firm price.