Seeking Alpha

Analysis: Lorillard-Reynolds American deal is not if but when

  • Wells Fargo analyst Bonnie Herzog is fairly confident (90%) that a deal in which Reynolds American (RAI) pays up to $80 per share for Lorillard (LO) is still likely (CNBC interview video).
  • Herzog thinks a combination of the two companies will "catapult" the e-cigarette business.
  • LO +2.0% premarket to $63.01 giving investors plenty of upside still if the Wells call is correct.
From other sites
Comments (3)
  • Tradevestor
    , contributor
    Comments (4110) | Send Message
     
    Ok give us $80 and get done already.. been going on for a long time..
    18 Jun 2014, 11:33 AM Reply Like
  • 2PP
    , contributor
    Comments (352) | Send Message
     
    I'm into LO for under $40, I'll take $80 and run to the bank.
    18 Jun 2014, 01:02 PM Reply Like
  • spiro3
    , contributor
    Comments (137) | Send Message
     
    Can't believe that Reynolds would take on 32 billion in debt. It would push Reynolds earnings up to 5.72 a share less the debt payment. Even with BTI putting up 42% Reynolds would be stuck with 18 billion debt. Still think it will be a stock swap because those are tax free.
    18 Jun 2014, 01:55 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs