The Value of a Listing in Nestle Case Study Example | Topics and Well Written Essays - 500 words

The Value of a inclination in Nestle - Case Study ExampleThe case study provides four options in severalize to make a decision concerning the listing of Alcon bon ton. The CEO of Alcon Company, Brabeck decided to list the participation in the monetary fund market so the whole financial world would recognize its value (Desai et al., 2006, p4). The four options that were considered by the line of merchandise market decision to list Alcon were Swiss stock market, American Depository Receipt (ADR), U. S. Stock Markets and twofold listing (Swiss and U.S. stock Markets).By using the first option, Swiss Listing, the company can gain a lot and the ROI would be superior through the simplification of a relationship between Alcon and Nestle. With the dual listing, the ROI would not be so much high since the company would incur a lot of expenses in registering in both countries. With the U. S. listing, Alcon Company can gain average income since it would not incur a lot of expenses in l isting in one country. Finally, the last option, American Depository Receipt (ADR), would not result to high ROI due to the fact that the method is most applicable with foreign companies (Desai et al., 2006, p6-7). The best option would be listing Alcon in Swiss Stock Market. cardinal risk that would be involved by listing the company is Swiss is lack of shareholders to buy the shares of the company. The other risk would disagreement between the top management concerning the listing.One risk that would be involved in lowering the price is that the investors may be afraid and favour to buy the Nestle shares instead. The other risk would be the rejection of the price by both the Nestle Company and the stock market. The alternative plan for this recommendation would be for the Alcon Company to offer the same price for their shares as Nestle Company.