British American Tobacco Proposes to Buy Reynolds Stake for $47 Billion
October 21 2016 - 2:57AM
Dow Jones News
By Ian Walker
LONDON-- British American Tobacco PLC on Friday announced a
proposal buy the stake it doesn't already own in U.S. peer Reynolds
American Inc. for $47 billion.
British American Tobacco, which already owns 42.2% of Reynolds,
has offered $56.50 a share for the remaining shares, and said any
deal would benefit earnings in the first full year.
The deal would value Reynolds at $81.3 billion.
U.S. securities laws require British American Tobacco to
announce its merger proposal promptly after it was made to the
board of Reynolds, and it has therefore been unable to have prior
talks regarding the proposal, the U.K. firm said.
Of the sum offered, $24.13 would be in cash, and $32.37 would be
in BAT shares.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
October 21, 2016 02:42 ET (06:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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