Tuesday, December 19, 2006
Gallaher: BAT decides against counter bid – report
British American Tobacco [BAT], the UK-listed tobacco company, is believed to have decided against making an offer for Gallaher, The Times reported. The report quoted a person familiar with the matter, who said competing against Japan Tobacco for Gallaher, the UK-listed tobacco firm, would be difficult. Gallaher last week recommended a GBP 7.5bn (EUR 11.1bn) offer from Japan Tobacco, the report noted.
The item went on to note anticipation of a counter bid to Japan Tobacco’s offer, which values the UK group at 1,140p per share. Gallaher shares closed at 1,155p last night (18 December). Merrill Lynch is advising Japan Tobacco. Gallaher’s market capitalisation stands at GBP 7.57bn (EUR 11.27bn).
It is believed that BAT remains open to other deals, the item said, noting market speculation of further consolidation in the tobacco sector. Analysts cited by the report tipped Altadis, BAT’s listed Spanish rival, as one potential target for BAT. Imperial Tobacco, the UK-listed tobacco group, was also mentioned in the report as a potential bid target for BAT.
Source The Times (London)
The item went on to note anticipation of a counter bid to Japan Tobacco’s offer, which values the UK group at 1,140p per share. Gallaher shares closed at 1,155p last night (18 December). Merrill Lynch is advising Japan Tobacco. Gallaher’s market capitalisation stands at GBP 7.57bn (EUR 11.27bn).
It is believed that BAT remains open to other deals, the item said, noting market speculation of further consolidation in the tobacco sector. Analysts cited by the report tipped Altadis, BAT’s listed Spanish rival, as one potential target for BAT. Imperial Tobacco, the UK-listed tobacco group, was also mentioned in the report as a potential bid target for BAT.
Source The Times (London)
