The blog quoted knowledgeable sources and stated that Reynolds may offer “no more than $22 billion at first” in its bid for Lorillard. Reynolds Tobacco is a subsidiary of Reynolds American and it is the second-largest tobacco company in the U.S.
This would be a massive coup for the company as Lorillard is the third-largest manufacturer of cigarettes in the U.S. Lorillard’s flagship product is Newport which is the second-largest selling cigarette brand in the U.S.
LO stock is up about 4.75% in early afternoon trading Monday. RAI stock is up 2.5%.