Timberwolf Equity Research
Tue, Nov. 15, 8:28 AM
- Reynolds American (NYSE:RAI) and British American Tobacco (NYSEMKT:BTI) are reportedly in talks over a reworked deal.
- Citi calls the development just a "formality" as Reynolds looks to squeeze out a better bid price amid a rising market. "If anything it suggests an agreement might come soon — The rejection comes a little over three weeks after the initial offer (October 21), which is on the faster side of our expectations," notes Citi analyst Adam Spielman.
- Shares of RAI are up 0.47% premarket to $53.30 vs. a 52-week range of $43.38 to $56.65. BTI +0.79% to $106.93.
- Previously: Reynolds American reportedly wants higher offer from BAT (Nov. 14)
Mon, Nov. 14, 3:39 PM| Mon, Nov. 14, 3:39 PM | 37 Comments
Tue, Nov. 1, 2:49 AM
- The board of directors of Reynolds American (NYSE:RAI) has formed a committee of independent directors, not designated by British American Tobacco (NYSEMKT:BTI), to evaluate the latter's $47B takeover offer.
- Goldman Sachs, JPMorgan and Lazard have been retained as financial advisors to the transaction.
- In light of the evaluation, Reynolds has canceled its investor day scheduled for Nov. 14, 2016.
Fri, Oct. 21, 7:23 AM
- Reynolds American (NYSE:RAI) confirms it received a non-binding proposal from British American Tobacco (NYSEMKT:BTI) to buy out the ~58% of its common stock not held by the British tobacco giant.
- The company says its board of directors will evaluate the offer from British Tobacco and respond accordingly.
- RAI +19.99% premarket to $56.52 (52-week high).
- Previously: BAT bids $47B to take Reynolds American ownership to 100% (Oct. 21)
- Source: Press Release
Fri, Oct. 21, 2:57 AM
- British American Tobacco (NYSEMKT:BTI) has offered to acquire the 58% in Reynolds American (NYSE:RAI) it doesn't own for $47B in cash and shares.
- BAT's proposal is worth $56.50 a share, or 20% above Reynold's closing price of $47.17 yesterday. BAT will pay $20B in cash and the rest in stock.
- The deal would bring together Newport, Kent and Pall Mall cigarettes under one umbrella to create the U.S. market leader. (PR)
Jul. 15, 2014, 7:22 AM
- Reynolds American (NYSE:RAI) says it will unload the Kool, Salem, Winston, Maverick, and blu eCigs brands along with some other assets to Imperial Tobacco (OTCMKTS:ITYBY) for $7.1B. The move is aimed at appeasing regulators.
- The company says the acquisition of Lorillard (NYSE:LO) will be accretive within the first full year and will show a double-digit accretion rate in the second year and beyond.
- A cooperation deal was struck between Reynolds and British American Tobacco (NYSEMKT:BTI) which includes sharing technology and development costs on next-gen tobacco products.
- Premarket: Lorillard -3.7%, Reynolds American -0.2%, British American Tobacco (BTI) -0.5%.
Jul. 15, 2014, 7:14 AM
- 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.
Jul. 11, 2014, 4:13 AM
- Reynolds American (RAI) may announce its purchase of Lorillard (LO) as early as July 14, Bloomberg reports.
- Many rumors have been circulating in the past few weeks regarding big tobacco M&A, as shrinking U.S. demand for cigarettes puts pressure on companies to team up.
- Under the current deal, Reynolds would acquire most of Lorillard, with some brands being acquired by Imperial Tobacco (ITYBY), to receive regulatory approval. British American Tobacco (BTI), who owns a 42% in Reynolds, is said to have already given the company the go-ahead for the purchase.
- The new report conflicts with another rumor heard this week stating British American Tobacco will buy the 58% of Reynolds American it doesn't already own - cancelling any possible deal with Lorillard.
Jul. 9, 2014, 8:16 AM| Jul. 9, 2014, 8:16 AM | 4 Comments
Jul. 9, 2014, 8:06 AM
- There's growing speculation in the U.K. that British American Tobacco (BTI) will buy out the 58% of Reynolds American (RAI) it doesn't own already.
- A deal would likely end the pursuit by Reynolds of Lorillard (LO) which has been in the works for weeks.
- Shares of Lorillard (LO) are down 3.7% premarket, while Reynolds American (RAI) is 2.1% higher.
May 22, 2014, 10:36 AM
- 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.
Apr. 29, 2014, 12:55 PM
- Bankers and lawyers are busy working on potential mergers in the tobacco industry, reports CNBC (video).
- The biggest buzz is over the potential that Reynolds American (RAI +1.4%) will buy Lorillard (LO +3%) for as much as $80 per share.
- Though Wells Fargo notes Reynolds would have to divest some significant menthol brands to get a Lorillard deal past regulators, the firm sees a deal as likely.
- Other tobaccco players: MO, PM, BTI, ITYBY, ITYBF, PHJMF, JAPAF, SFIO, VGR, SWNG, SWMAF, SWMAY, XXII, BTAFF, UVV
May 26, 2011, 12:49 PM
British American Tobacco (BTI +1.5%) inks a deal to purchase Colombia's 2nd largest cigarette maker for $452M. A much smaller market than Asia, a wealthier, more brand-conscious Latin America can still offer growth and profits to tobacco companies getting less of both in their home markets.| May 26, 2011, 12:49 PM