STOCKS NEWS EUROPE-L'Oreal up after Nestle sells Givaudan shares
Shares in the world's biggest cosmetics maker L'Oreal rise 3.2 percent in brisk volume as traders cite speculation that Nestle, which owns a significant stake in L'Oreal, could sell the stake after it offloaded shares it owns in Givaudan.
A Paris-based trader said the Givaudan placement fuels expectations that Nestle might also be willing to sell its L'Oreal stake back to the company, which would boost its earnings per share.
"The read across on L'Oreal is therefore positive, given that it backs the scenario through which Nestle would be selling its L'Oreal stake to the company itself which would cancel the shares of this mega buy-back, with an accretive impact on EPS," the trader says.
Market speculation about whether Nestle will sell the L'Oreal stake has picked up in recent months since restrictions on selling it loosen in April 2014.
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