2008-07-18

Reynolds bought chew tobacco and snuff

Reynolds American Tobacco Corporation has agreed to buy for $ 3.5 billion company Conwood, supplying chewing and snuff. So Reynolds was the first in several years, a major producer of cigarettes, undertake expansion of the market of tobacco products not related to smoking.
Quarter in the city of Winston-Salem (North Carolina), a corporation owned by Reynolds American brands Camel and Salem. After purchasing Conwood, the corporation has become the second largest player in the market "smokeless" tobacco products (the leader of this market is UST).
In early April Bonii Herzog, an analyst with Citigroup, valued at $ Conwood 1,4-1,8 billion Thus, by entering into a deal with Reynolds, Pritskers able to substantially improve its financial position. "We believe that [the proposed Reynolds] a very high price for such assets" - said David Eydelman, an analyst with Morgan Stanley, Reynolds shares appropriate rating below market media price. "
Following the announcement of the transaction on the NYSE in the tender for 16.00 shares of Reynolds on Wednesday added weight to $ 0.84, rising to $ 110.67. To finance the purchase Corporation will allocate $ 300 million from the existing cash reserve and resort to increased borrowing in the amount of $ 3.2 billion

3 комментария:

H.C. Tan комментирует...

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Global Warming комментирует...

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Ana Maria Sisnando e Andréa Fialho комментирует...

Thank you.