Reynolds CEO Cameron downplays M&A chatter


Investors betting on a potential deal between Reynolds American (RAI) and Lorillard (LO) might want to change their thinking: That appears to be the message of RAI CEO Susan Cameron, who downplayed such speculation today at a Goldman Sachs investor conference.

The CEO also swatted down talk that British American Tobacco might raise its 42% stake in RAI after a 10-year standstill agreement preventing a hostile takeover expires in July, saying "I don’t see BAT as a stealth predator. I see them as a partner."

Cameron also said investors shouldn’t speculate that her sudden, surprise return to the RAI helm after leaving three years ago means a deal is more likely; predecessor Dean Delen decided to retire a bit sooner than planned strictly for family reasons, prompting the board to ask her to take over again.

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Comments (6)
  • spiro3
    , contributor
    Comments (359) | Send Message
     
    Her comment fit right into the merger of RAI-LO since she said BTI is a partner. Bti want to take the E-cigs of them to market overseas and also the RAI smokeless and American Natural brand.
    13 May 2014, 06:33 PM Reply Like
  • donlsales
    , contributor
    Comments (123) | Send Message
     
    Sell your tobacco stocks now and enjoy the gains that you made.
    13 May 2014, 07:43 PM Reply Like
  • spiro3
    , contributor
    Comments (359) | Send Message
     
    Sell yours and pay the 15% tax and state tax
    14 May 2014, 02:08 AM Reply Like
  • Ed Rudy, WWW.EdRudy.com
    , contributor
    Comments (723) | Send Message
     
    British American Tobacco is definitely very interested in increasing its huge ownership percentage in RAI to majority ownership percentage.

     

    Expect RAI stock prices to continue to RISE!
    13 May 2014, 08:45 PM Reply Like
  • spiro3
    , contributor
    Comments (359) | Send Message
     
    BTI is not interested in RAI except that if RAI and LO merge then BTI would own 25% of both companies and since BTI can market overseas the smokeless and E-cigs of both companies they might make a cash contribution to the new company in lieu of more ownership to market the products overseas.
    14 May 2014, 02:15 AM Reply Like
  • Ed Rudy, WWW.EdRudy.com
    , contributor
    Comments (723) | Send Message
     
    Spiro3: BTI ALREADY owns 42% of RAI and is definitely seeking to be the majority shareholder in the giant American Reynolds-American though you are probably about BTI being very interested in RAI's E-cig business.
    Thank you, Spiro3
    14 May 2014, 03:32 PM Reply Like
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