Novartis completes first step of Alcon buy

ZURICH (Reuters) - Novartis AG (NOVN.VX: Quote, Profile, Research, Stock Buzz) has completed the acquisition of a 25 percent stake in eye care company Alcon Inc (ACL.N: Quote, Profile, Research, Stock Buzz) for about $10.4 billion in cash, the Swiss drugmaker said on Tuesday.

It is the first step in Novartis's agreement to acquire a majority stake in Alcon from Nestle SA (NESN.VX: Quote, Profile, Research, Stock Buzz) and the price is about $200 million less than previously announced, due to a dividend payment, Novartis said in a statement.

Novartis has the right to buy, and Nestle to sell, a further 52 percent stake in Alcon for a price of not more than $28 billion.

(Reporting by Sam Cage)