Law Offices of Howard G. Smith Announces Investigation On Behalf of Shareholders of Alcon, Inc.

Law Offices of Howard G. Smith announces that it is investigating potential shareholder claims related to the January 4, 2010, announcement by Novartis AG that it had exercised its option to purchase the approximately 156 million shares of Alcon, Inc. ("Alcon” or the "Company”) (NYSE:ACL) owned by Nestle S.A. at a weighted average price of $180 per share in cash.

In 2008, Novartis purchased a 25% interest in Alcon from Nestle, including an option to buy another 52% of the Company between January 2010 and July 2011. Upon consummation of the current purchase proposal, which is valued at approximately $28 billion, Novartis would own an approximate 77 percent interest in Alcon. The investigation concerns Alcon’s minority shareholders’ rights and potential shareholder claims related to the proposal.

Novartis also announced that it has submitted to the Alcon board of directors a proposal for a merger of Alcon with and into Novartis to be effected under Swiss merger law. Under the terms of the proposed merger, minority holders of the approximately 23 percent of Alcon shares that are publicly traded would receive 2.8 Novartis shares for each Alcon share they own. This would value each publicly traded share of Alcon at approximately $153, based on Novartis’ share price and U.S./Swiss exchange rates prior to the announcement. The proposed merger would be contingent upon, among other things, approval by the Alcon board of directors, the closing of the purchase and sale transaction related to the Novartis option exercise, and required regulatory approvals.

In response to Novartis’ announcement, the Alcon board of directors issued press releases stating, among other things, "its belief that Alcon has established certain important protections for the benefit of Alcon’s minority shareholders against a coercive takeover bid and is disappointed that Novartis is attempting to circumvent those protections,” and noting that Novartis’ implied per-share valuation of Alcon represents an approximate 15 percent discount to the price Novartis is paying Nestle for Nestle’s approximate 52 percent interest in Alcon.

If you own shares of Alcon, Inc., if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.