Tobacco merger buzz fades as reality sets in

Shares of Lorillard (LO -5.5%) retreat after reality sets in that a deal for the company to be purchased by Reynolds American (RAI -1.8%) is complicated and could take some time to work out. The third wheel in the merger mix is British American Tobacco (BTI -0.9%) which owns 42% of Reynolds and could make a play for the whole company after a standstill agreement expires in July.

Analysis is divided on if a deal will end up being completed at all. Stifel thinks regulators will jump in over the dominance in menthol a combination of the tobacco companies would create - while Wells Fargo's read is much more optimistic.

Vector Group (VGR -1.6%) has been taken for a ride along with Lorillard and Reynolds, popping yesterday and deflating today.

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Comments (5)
  • Tradevestor
    , contributor
    Comments (5017) | Send Message
    Good time to add Philip Morris due to all these ?
    22 May 2014, 10:44 AM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4524) | Send Message
    Not selling for less than $75, $80 if i can get it.
    22 May 2014, 03:29 PM Reply Like
  • unclewoo
    , contributor
    Comments (91) | Send Message
    If your a young person stating your IRA, its never a bad time to add any big tobacco to your retirement account.
    23 May 2014, 01:15 PM Reply Like
  • Profitcripper
    , contributor
    Comments (322) | Send Message
    Antitrust laws is written all over this like white on rice. They will have to sell a portion of dominance brand to someone else but who?
    25 May 2014, 08:50 AM Reply Like
  • abbyandandrew
    , contributor
    Comments (43) | Send Message
    It will not happen! The top management people are so greedy to make this deal work and will be rewarded incredibly!!!
    30 May 2014, 09:17 PM Reply Like
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