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.

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Comments (3)
  • Tradevestor
    , contributor
    Comments (5018) | 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 (343) | 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 (505) | 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
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