L'Oreal's stake is financial and strategic-Nestle
PARIS Feb 11 (Reuters) - Nestle's stake in French cosmetics group L'Oreal is both financial and strategic, Nestle's chairman Peter Brabeck said on Tuesday.
"Nestle's stake is financial as well as strategic long-term," Brabeck told a news conference.
Earlier on Tuesday, L'Oreal said it would buy 8 percent of its capital for 6.5 billion euros ($9 billion) from Nestle, boosting the French cosmetics group's earnings per share by more than 5 percent.
The deal will cut Nestle's stake in L'Oreal to 23.29 percent from 29.4 percent while the Bettencourt Meyers family's stake in L'Oréal will increase from 30.6 percent to 33.31 percent.
(Reporting by Pascale Denis, writing by Dominique Vidalon, editing by Astrid Wendlandt)