Reynolds American buys Lorillard in $27.4B deal

|About: Reynolds American, Inc. (RAI)|By:, SA News Editor

Reynolds American (NYSE:RAI) announces it will buy Lorillard (NYSE:LO) in a deal valued at $27.4B.

Lorillard shareholders will receive $50.50 in cash and 0.2909 a share of Reynold at closing, which reps a deal price of $68.88 at Reynold's current trading level.

British American Tobacco (NYSEMKT:BTI) will hold on to its 42% stake in Reynolds as part of the deal.