Lorillard Takeout Likely Much Higher than $60/Shr: Wells Fargo
2014-03-03 18:59:39.9 GMT
By Joshua Fineman
March 3 (Bloomberg) -- Lorillard “fair” takeout price
likely “much higher” than $60/shr Reynolds America is
speculated to bid, as reported by FT Alphaville, Wells Faro
analyst Bonnie Herzog wrote in note.
* “Question” timing of deal now as RAI would likely want to
wait for FDA recommendation on menthol, e-cig regulation
before making a move; not sure how RAI will finance bid
* Sees more likely scenario British American/RAI form
strategic partnership to gloablly market/sell e-cigs;
doesn’t “rule out” BTI taking majority stake in RAI; if
that were to happen would help finance possible purchase of
LO
* NOTE: British American owns 42% of RAI
* LO remains outperform at Wells Fargo, valuation range $56-
$58
* NOTE: FT said RJ Reynolds hires Lazard for possible LO bid
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editors responsible for this story:
Joanna Ossinger at +1-212-617-7789 or
jossinger@bloomberg.net
Scott Schnipper
2014-03-03 18:59:39.9 GMT
By Joshua Fineman
March 3 (Bloomberg) -- Lorillard “fair” takeout price
likely “much higher” than $60/shr Reynolds America is
speculated to bid, as reported by FT Alphaville, Wells Faro
analyst Bonnie Herzog wrote in note.
* “Question” timing of deal now as RAI would likely want to
wait for FDA recommendation on menthol, e-cig regulation
before making a move; not sure how RAI will finance bid
* Sees more likely scenario British American/RAI form
strategic partnership to gloablly market/sell e-cigs;
doesn’t “rule out” BTI taking majority stake in RAI; if
that were to happen would help finance possible purchase of
LO
* NOTE: British American owns 42% of RAI
* LO remains outperform at Wells Fargo, valuation range $56-
$58
* NOTE: FT said RJ Reynolds hires Lazard for possible LO bid
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editors responsible for this story:
Joanna Ossinger at +1-212-617-7789 or
jossinger@bloomberg.net
Scott Schnipper