Philip Morris seen getting serious about Altria pursuit

|About: Altria Group, Inc. (MO)|By:, SA News Editor

The odds of Philip Morris (NYSE:PM) acquiring Altria (NYSE:MO) have improved, according to Wells Fargo analyst Bonnie Herzog.

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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