British American Tobacco thinking about increasing offer for Reynolds American by USD 8 per share - http://bit.ly/2gZPES1
British American Tobacco [LON:BATS] is mulling a USD 8 (GBP 6.40) per share increase to its USD 56.50 per share takeover bid for Winston-Salem, North Carolina-based rival Reynolds American [NYSE:RAI], The Sunday Times reported. The newspaper cited one unspecified source for the information.
BAT is looking to acquire the 58% of Reynolds American shares that it does not already own. The report cited City and Wall Street sources who said UK-based tobacco company is believed to have indicated that it is prepared to sweeten its existing bid by increasing the cash component of the offer. The offer as it stands values Reynolds at USD 47bn.
Approximately 43% of BAT’s offer is cash, with the remainder of the offer comprised of its own shares, the item said. BAT shares have lost 6% of their value since it announced its offer, the article noted.
Bankers working on the deal believe a deal will be agreed early next year, although a deal announcement could come next week, the report continued.
Reynolds American’s share price closed USD 0.11 down at USD 55.54 in New York on Friday, 16 December, giving the company a market capitalisation of USD 79.18bn.