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Stock Market & Financial Investment News

News Breaks
March 10, 2014
10:13 EDTBTI, LO, ITYBY, RAIReynolds American advances after Citi says could be takeover target
Shares of cigarette maker Reynolds American (RAI) are climbing after Citigroup wrote that the company could be acquired by British American Tobacco (BTI). WHAT'S NEW: In a note to investors earlier today, Citigroup analyst Vivien Azer forecast that Reynolds American (RAI) is likely to either enter into a joint venture with British American Tobacco or be acquired by the British company. After meeting with Reynolds' CEO and Chief Scientific Office last week, Azer thinks that the fundamentals of Reynolds' business "reinforce its attractiveness" to British American, either as an acquisition target or joint venture partner, she wrote. WHAT'S NOTABLE: In a separate note to investors earlier today, Citigroup U.K.-based analyst Adam Spielman wrote that it would be logical for British American to acquire the 58% of Reynolds it doesn't already own, as the deal would be accretive to British American's EPS while enabling the British company to access Reynolds' intellectual property related to e-cigarettes. It is "quite possible" that British American will acquire Reynolds, but it is unlikely that Reynolds will buy another company in the sector, Lorillard (LO), according to Spielman. If British American decides to bid for Lorillard, it would look to acquire Reynolds first, added Spielman. Imperial Tobacco (ITYBY) is also not likely to bid for Lorillard, the analyst believes. Spielman kept a Buy rating on British American, while Azer maintained a Buy rating on Reynolds American. PRICE ACTION: In early trading, Reynolds American rose 1.2% to $54.17, while Lorillard fell 1% to $52.45. British American Tobacco shares trading in New York were little changed near $110.75.
News For RAI;BTI;LO;ITYBY From The Last 14 Days
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September 29, 2014
06:41 EDTBTI, LO, RAITobacco companies placing tough warnings on e-cigarettes, NY Times says
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September 19, 2014
09:53 EDTRAIRJ Reynolds Tobacco appoints Debra Crew Chief Commercial Officer
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