22nd May 2014 08:42
LONDON (Alliance News) - Reynolds American Inc is in active discussions to buy Lorillard Inc in a complicated, three-way transaction that could see British American Tobacco PLC take a major role, Reuters News reported Thursday.
The two US names are the second- and third-largest tobacco producers in the country, and are said to be in advanced merger talks to create a company with a market value close to USD55 billion, according to Reuters.
British American Tobacco has a 42% stake in Reynolds and would likely have a significant say in any deal. British American Tobacco shares are up 2.2% Thursday at 3,603.36 pence.
http://www.reuters.com/article/2014/05/21/us-lorillard-reynolds-amricn-idUSBREA4K13A20140521
By Jon Darby; [email protected]; @jondarby100
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