Imperial Tobacco shares gain on renewed talk of break-up by BAT and Japan Tobacco; CNTC also tipped as potential bidder
Imperial Tobacco’s share price hit their highest ever price on 24 September on revived talk of a break-up bid from British American Tobacco (BAT) and Japan Tobacco, the Financial Times reported. The newspaper’s market report section did not cite a source for the speculation, but noted that executives from both Japan Tobacco and BAT held investor meetings last week in London.
Analysts cited by the report added a note of caution, however, arguing that Imperial’s strong performance had brought it level with BAT, while the Japanese government’s 33% interest in Japan Tobacco was also an issue.
The Chinese government controlled tobacco company CNTC had been tipped as a possible bidder for Imperial Tobacco, the item added. However, the analysts cited by the report argued that Imperial’s expansion in the US would be an obstacle to a tie-up with CNTC.
Imperial Tobacco’s share price closed 66p up at 3465p, valuing the company at GBP 33.16bn (EUR 45.21bn).