Herzog says the current political and macro environment could push the companies into talks.
She assigns a 70% probability to a deal occurring in the next 6 to 12 months, with Philip Morris paying up to $77 per share for Altria (15% premium).
Talk of a PM-MO combination has been circulating for quite a bit and may be partially baked into MO's share price.
MO +0.15% premarket to $67.14. Philip Morris +0.62% to $91.88.
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