Nestle SA, Bettencourt family to work on L’Oreal after stakes expire

PARIS Nestle SA and France’s Bettencourt family will continue to work together on beauty company L’Oreal after their stakes in the company expire April 29, according to published reports.

Both Nestle and Bettencourt own about 30% stakes in L’Oreal and industry observers have been speculating on what Nestle might do with its stake when the shareholder pact expires.

According to a Reuters report, the two parties said in a joint statement, “The Bettencourt family and the Nestle company will continue on acting in concert towards the L’Oreal company beyond 29 April 2009.”

The report also quoted a Nestle spokeswoman who said, while there is no immediate need to act, the future of the firm?s involvement in L’Oreal is a high priority for the board.

Under the current agreement, Nestle is not able to snap up more L’Oreal shares until six months after the death of Liliane Bettencourt, the 86-year-old billionaire daughter of the firm’s founder. It also has right of first refusal if the family wants to sell up.