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Stock Market & Financial Investment News

News Breaks
July 9, 2014
11:25 EDTITYBY, RAI, BTI, LOReynolds rises as BAT said to contemplate total takeover
Shares of cigarette manufacturer Reynolds American (RAI) are higher this morning following a report that British American Tobacco (BTI) is close to a deal to buy the stake in Reynolds it does not already own. WHAT'S NEW: The Daily Mail reported that British American Tobacco, which currently holds a 42% stake in Reynolds, is speculated to be "on the verge" of buying out the 58% of its U.S. peer that it does not already own. WHAT'S NOTABLE: A deal for Reynolds, whose brands include Kill, Camel, Winston and Salem, by British American Tobacco would stop any plans Reynolds might already have to buy Lorillard (LO), which makes Newport menthol cigarettes and electronic cigarettes. CNBC's David Faber said on July 3 that Reynolds was on track to buy Lorillard "within weeks," and added that Imperial Tobacco (ITYBY) would likely buy some of the divested assets as a result of the transaction. Faber noted at the time that British American Tobacco was likely to build a position in Reynolds. ANALYST REACTION: According to the Daily Mail, Citigroup has said it would be "advantageous" for British American Tobacco to acquire all of Reynolds, as its earnings per share would be boosted by 10%-13% and give it access to "one of the best" global e-cigarette platforms. The firm believes a total acquisition would allow British American Tobacco "total freedom" to deploy Reynolds' intellectual property on e-cigarettes. PRICE ACTION: Reynolds American shares are up $1.62, or 2.64%, to $62.93 in mid-morning trading. Meanwhile, British American Tobacco shares trading in New York are down 46c to $121.51 and Lorillard is up 40c to $63.33.
News For RAI;LO;BTI;ITYBY From The Last 14 Days
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May 27, 2015
11:23 EDTRAI, LO, ITYBYReynolds American, Lorillard higher after being granted FTC approval for deal
U.S. tobacco companies Reynolds American (RAI) and Lorillard (LO) are trading higher this morning after the Federal Trade Commission agreed to approve the companies' $27.4B merger under the condition that they divest some brands. WHAT'S NEW: The FTC last night said it would allow the merger between Reynolds and Lorillard to move forward under the condition that the companies sell four cigarette brands to Imperial Tobacco Group (ITYBY). The proposed order requires Reynolds to divest to Imperial four established cigarette brands: Winston, Kool, Salem and Maverick. The FTC also is requiring Reynolds to divest Lorillard's production facilities in Greensboro, North Carolina, and will give Imperial the opportunity to hire most of the existing staff at the facilities. Reynolds and Lorillard will also have to temporarily provide Imperial with retail shelf space. The last significant hurdle to close the deal is approval from a federal district court overseeing United States v. Philip Morris USA Inc., et al. According to a statement from Reynolds and Lorillard, "The companies have requested that the court rule expeditiously, and they are confident that the acquisition and related transactions will close by the end of June." WHAT'S NOTABLE: Marlboro brand owner Altria Group (MO) has a 47% U.S market share, followed by Reynolds with a 26% share and Lorillard (LO) at 14%, Reuters reported, citing 2013 data from Euromonitor International. ANALYST REACTION: In a note to investors this morning Cowen upgraded Reynolds American to Outperform from Market Perform with an $86 price target. The firm said that the FTC's clearance of the Reynolds and Lorillard deal is a positive for both and named Reynolds a top pick in U.S.tobacco. PRICE ACTION: Reynolds American is up 2.12% to $77.03 in late morning trading and Lorillard is up over 1% to $72.86. Imperial Tobacco is up 3.2% to $103.56 and Altria is up over 1% to $51.89.
10:01 EDTRAIOn The Fly: Analyst Upgrade Summary
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06:28 EDTRAIReynolds American upgraded to Outperform from Market Perform at Cowen
Cowen upgraded Reynolds American to Outperform with a $86 price target. The firm said the FTC's clearance of the Reynolds (RAI) and Lorillard (LO) deal is a positive for both and named Reynolds a top pick in U.S. tobacco.
May 26, 2015
18:00 EDTRAI, LO, ITYBYFTC requires Reynolds, Lorillard to divest four brands as merger condition
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17:54 EDTLO, RAIFTC requires Reynolds, Lorillard to divest four brands as merger condition
May 22, 2015
11:59 EDTLO, RAI, BTIAppeals court ruling mixed for cigarette makers, WSJ reports
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May 21, 2015
15:44 EDTLO, RAIReynolds-Lorillard deal expected to receive FTC clearance next week, WSJ says
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15:25 EDTRAI, LOLorillard, Reynolds American deal expected to be cleared by FTC, DJ reports
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May 15, 2015
16:28 EDTLOAppaloosa Management gives quarterly update on stakes
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10:34 EDTLOOptions with increasing implied volatility
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