BAT rumoured to be closing in on Reynolds American buyout at USD 75 per share or more
British American Tobacco (BAT) is increasingly rumoured to be poised to buy out its NYSE-listed competitor Reynolds American, The Daily Mail reported. The market report said BAT's London-quoted stock has dropped to 3555.5p, down 19.5p, in anticipation of a multi-billion-pound spend to acquire the 58% Reynolds American stake it does not yet have.
Rumours yesterday suggested BAT might be prepared to pay more than USD 75 per share to take its current 42% stake to full ownership, the item reported. It noted that Reynolds American shares were trading at USD 61.40 early yesterday, 8 July.
A standstill arrangement prevents BATS from bidding at the moment but will expire in three weeks, leaving BATS free to move, the report said. It added that a BAT acquisition of Reynolds American would scupper any hopes the Winston Salem, North Carolina-based tobacco group might have of buying its rival Lorillard - a transaction which rumours have suggested might be worth more than USD 20bn.
Source Daily Mail