Nestle SA; the world's biggest food maker has decided that it will delist its shares from the Euronext Paris SA's Eurolist and the London Stock Exchange. The food giant said that it wanted to concentrate trading of its stock on the SWX Swiss Exchange in Zurich.
In an e-mailed statement, the company said, "This is part of Nestlé’s ongoing strategy of concentrating the trading of its shares on SWX Swiss Exchange in Zurich." In the recent past, Nestle has delisted its shares from the Tokyo, Amsterdam, Brussels, Vienna and Frankfurt exchanges.
The company added that the request to delist its shares from the Euronext Paris SA has already been approved by the Conseil d'orientation, without any opposition from the French financial market authority. The decision to delist from London and Paris was due to low transaction volumes, which were equivalent to less than 1% of the Zurich trading volume, the company said.
Nestle shares would be removed from Eurolist on July 27 and from the London Stock Exchange on June 29. However, the shares will continue to be traded as American Depositary Receipts, or ADRs, in the United States, the statement added.
Meanwhile, analysts at Julius Baer Holding AG in Zurich said in a note to investors that the move was "no big deal but would save costs and increase volumes." The Vevey, Switzerland-based Company has a market value of 134 billion francs. In the last year Nestle shares have risen by 1.8 percent.
Posted
on : Thu, 02 Jun 2005 06:30 GMT | Business News
By : Paula Jenkins
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