Buyout Buzz: Reynolds American May Bid for Lorillard

by Karl Utermohlen | March 3, 2014 1:44 pm

Buyout Buzz: Reynolds American May Bid for Lorillard

Reynolds American (RAI[1]) may make a bid for tobacco giant Lorillard (LO[2]), according to a report by The Financial Times blog.

Lorillard Buyout Buzz: Reynolds American May Bid for Lorillard[3]The blog quoted knowledgeable sources and stated that Reynolds may offer[4] “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%.

Endnotes:
  1. RAI: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAI
  2. LO: http://studio-5.financialcontent.com/investplace/quote?Symbol=LO
  3. [Image]: http://investorplace.com/wp-content/uploads/2010/08/Lorillard.jpg
  4. Reynolds may offer: http://www.cspnet.com/category-management-news-data/tobacco-news-data/articles/reynolds-american-to-make-bid-for-lorillard

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