Tobacco.org

• Cigarette Smuggling Case Is Dismissed Again 

An appeals court for a second time dismissed lawsuits that accused Reynolds American Inc. and British American Tobacco of smuggling cigarettes to avoid taxes and customs duties.

The ruling by the 2nd U.S. Court of Appeals in New York rejected separate lawsuits by the European Union and by 25 departments of Colombia . . . .

The court first dismissed the suits last year, only to have the U.S. Supreme Court ask it to reconsider. The appeals court again cited the revenue rule, a U.S. legal principle that bars suits by foreign governments seeking to collect unpaid taxes.

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Gobernadores descartan arreglo directo con Philip Morris y British American Tobacco [Governors discard direct adjustment with Philip Morris and British American Tobacco] 

The agent chief executives trust gaining demand who have against the tobacco multinationals in one cut of E.U. by contraband and washing of assets.

Thus it was established at the end of a meeting in which the minister of the Interior, Sabas Pretelt, and the presidential advisor participated to 22 agent chief executives yesterday and Juan Lozano in Bogota. In the meeting also a representative of the mayor of Bogota was present, Luis Eduardo Garzón.

In agreement with the president of the National Federation of Departments, Rodrigo Villalba, so far is discarded a direct adjustment to arrive at a conciliation with the companies.

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• EDITORIAL: The Dark Side of the Marlboro World 

[Translated from Spanish by Suzanne Lazarus]

A fundamental failure of the U.S. Supreme Court of Justice opened the doors last week for the Colombian departments and the National Government to try in American courts the damages caused by three multinational cigarette manufacturers: Philip Morris, RJR Nabisco and British American Tobacco, for promoting or tolerating for many years the smuggling of their cigarettes into Colombia and for evading taxes on these cigarettes.

The court's decision is the latest episode in a trial which was begun by departments of the American justice system in 2000, to which the National Government was later added to bring charges for the laundering of assets. The basis of this was the argument that smuggling is a mechanism used by some drug traffickers to launder illegal funds. Due to a set of partial reversals in lower courts--even though the battle has not been won--the court's decision raises the hopes that the Colombian claims will be effective. . . .

In the meantime, this will send a critical message to the multinationals that they must compete honestly and, above all, take special care in avoiding criminal conduct. . . .

It is intolerable that cigarettes are distributed as gifts to youth in shopping centers, bars and restaurants to get them hooked on the vice. Moreover, it is inexplicable that the country has not signed and ratified the Framework Convention on Tobacco Control or created legislation to prohibit and sanction the sale to and use by minors. . . .

Total annual consumption is 21 billion cigarettes, and the effect on public health is enormous: in just this last year, cigarettes killed 25,000 people. For this reason, the State should act without delay to stop this.

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Philip Morris Seeks 100% of Colombia's Coltabaco Shares 

ip Morris International's Dutch unit, GWP CV, said it's prepared to acquire the shares it doesn't already own in Colombia's largest tobacco firm, Compania Colombiana de Tabaco (COLTABACO.BO).

GWP CV acquired 96.7% of Coltabaco for $299.62 million on April 25 after a public tender offer. It purchased 61,414,222 shares of the 63,539,967 outstanding shares.

In a letter sent to the local securities superintendency late Monday, GWP CV said it will maintain its price of $4.8788 per share that shareholders received in the original tender offer. The company will purchase the remaining shares from Tuesday until May 27.

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• R.J. Reynolds Faces New U.S. Hearing in EU Case 

The U.S. Supreme Court breathed new life Monday into a European Union lawsuit that accuses R.J. Reynolds Co. of smuggling cigarettes to avoid paying potentially billions of dollars in taxes, fees and customs duties.

The justices, citing their decision last week in a case raising similar issues, on Monday told a federal appeals court to revisit its conclusion that U.S. judges lack jurisdiction to consider the EU claims.

The justices also told the lower court to reconsider a related bid by 25 Colombian departments, equivalent to U.S. states, to sue units of British American Tobacco and other cigarette makers.

R.J. Reynolds spokesman Seth Moskowitz said the appeals court "should uphold its prior conclusion because that conclusion is consistent with the reasoning the Supreme Court used in the case it cites." . . .

The Colombian complaint says tobacco companies, particularly BAT and its former Brown & Williamson unit, ran a similar system to sneak cigarettes into that country. BAT last year sold Brown & Williamson to Reynolds American Inc., the Winston-Salem, N.C.-based parent of R.J. Reynolds Tobacco.

In throwing out the EU and Colombian lawsuits, the New York-based U.S. 2nd Circuit Court of Appeals pointed to the so-called revenue rule

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Multinational tobacco company Philip Morris, the new owner of Coltabaco, will continue the brand Pielroja 

The American company payed 700 million pesos for one of the signature Antioquia companies which will now produce Marlboros. . . .

The Public Offer of the Acquisition of Shares (Oferta Pública de Adquisición de Acciones (OPA)), which was scheduled to last two hours, started exactly at eight in the morning, but by 8:30, 96 percent of the company had already been sold, the majority of whose shareholders were of the Antioqueño Business Group (Grupo Empresarial Antioqueño). . . .

Therefore, the first thing that the Colombian manager of Philip Morris, Luc Gerard, wanted to do after completing the purchase of 96.65% of Coltabaco on the part of this American multinational, wasn't exactly to light up a Marlboro, because he doesn't like smoking.

His most fervent wish was to take a plane to Medellín where just yesterday he assumed control over one of the signature companies of Antioquia, and to taste a local dish with his colleagues to celebrate the closing of the deal of the year in Colombia.

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• Philip Morris International Inc. Announces Successful Public Tender Offer for Coltabaco S.A. 

GWP C.V., an affiliate of Philip Morris International Inc. (PMI), acquired 96.65% of the outstanding shares of Compania Colombiana de Tabaco S.A. ("COLTABACO") in a Public Tender Offer completed today.

The price offered per share was COP 11,398.13 (US $4.878817). GWP has purchased 96.65% for a value of COP 700.007 billion (US $299.6 million). The offer valued 100% of Coltabaco shares at COP 724.237 billion (US $310 million).

"Our investment in COLTABACO is a great opportunity to significantly expand our business in Colombia and in Latin America," said Andre Calantzopoulos, President and Chief Executive Officer of PMI.

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• UPDATE 2-Philip Morris unit buys Colombia co. for $300 mln 

A Dutch unit of Philip Morris has bought 96.65 percent of Colombia's biggest cigarette manufacturer, Coltabaco (CCT.CN) , for $299.6 million, the Colombian Stock Exchange said on Monday.

Top shareholders in Coltabaco -- the largest Latin American cigarette maker not controlled by Philip Morris or its competitor British American Tobacco (BATS.L) -- had recommended acceptance of the public offer, which was announced last August.

Philip Morris, controlled by Altria Inc. (MO.N) , is seeking to grow in developing countries. The company is also bidding to buy Indonesian tobacco company PT Hanjaya Mandala Sampoerna Tbk (HMSP.JK) for $5 billion.

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Coltabaco fue comprada por Philip Morris, hasta hoy la empresa perteneció a socios colombianos. 

Before accepting the OFFER of Philip Morris . . . was courted by British American Tobacco. Although he was a little more than five years of discreet coqueteos, she will never know herself for sure when she began the romance between Philip Morris and the Colombian Tobacco Company (Coltabaco). Darío Múnera, president of Coltabaco, say that its company always was a fiancèe very besieged reason why it is not to be surprised that the best one of the pretendientes remained with her. In this business of 1,100 million clients in the world (in Colombia billion annual cigarettes only take place 25), the greater slice takes to the multinational Philip to it Morris, proprietor of the recognized Marlboro.

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Philip Morris sets April 25 to buy Colombian firm 

Philip Morris will a launch a tender for shares of Colombia's biggest cigarette manufacturer, Coltabaco (CCT.CN: Quote, Profile, Research) , on April 25, the U.S. tobacco giant said on Friday.

A Dutch unit of Philip Morris, GWP C.V., will pay $4.88 per share for Coltabaco in a deal worth $310 million, according to previously announced details.

Top Coltabaco shareholders have recommended acceptance of the offer, and the Colombian government has approved the acquisition.

Philip Morris, which is controlled by Altria Inc. (MO.N: Quote, Profile, Research) , disclosed the date for the offer in an announcement published in Colombian newspapers.

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• Colombia Regulator OKs Philip Morris Unit's Coltabaco Bid 

Colombia's securities regulator late Thursday approved the sale of Compania Colombiana de Tabaco (COLTABACO.BO) to GWP CV, a Dutch unit of Philip Morris International.

GWP CV plans to launch a public tender offer for up to 100% of Coltabaco's stock worth a maximum of about $314 million. GWP CV will pay a maximum price per share of $4.88.

Luc Gerard, CEO of Philip Morris Colombia, told financial newspaper La Republica Friday that the public tender offer will take place on April 25.

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Coltabaco sale to Philip Morris put off until May 

Stockholders in Colombia's biggest tobacco company Coltabaco (CCT.CN: Quote, Profile, Research) on Tuesday said they extended the deadline for selling the company to Philip Morris to May 31 from March 31.

No reason was offered

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• Colombia approves $310 mln Philip Morris purchase 

The Colombian government on Tuesday approved the $310 million purchase of Coltabaco, the country's largest cigarette maker, by U.S. tobacco giant Philip Morris.

"The transaction will not cause problems for competition," the Industry and Trade Superintendency said in a news release.

Netherlands-based Philip Morris International Inc unit GWP CV last year offered to pay $4.88 a share for up to 100 percent of the 63.5 million shares outstanding, giving a potential value of $310 million.

Philip Morris, which is controlled by Altria Group Inc. , already has a big presence in Colombia with its Marlboro brand. Altria also controls top U.S. food maker Kraft Foods Inc.

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Colombia Coltabaco Holders OK Co's Sale To Philip Morris 

A majority of shareholders in Colombian tobacco firm Compania Colombiana de Tabaco have agreed to the concern's sale to Philip Morris International.

Philip Morris International will now launch a public tender offer for up to 100% of Coltabaco's stock (COLTABACO.BO) worth approximately $314 million.

During a shareholder's meeting late Monday, 66.13% of Coltabaco shareholders agreed to sell the company. Coltabaco has 63,539,967 million shares outstanding.

"Philip Morris approached us two years ago. We said at that time that we were not interested. But they insisted so many times that we decided to sit at the table to hear the proposal," Coltabaco president Dario Munera told Caracol radio. Munera has been president of Coltabaco for over 50 years.

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Coltobaco shareholders approve Philip Morris sale 

Shareholders in Coltobaco (CCT.CN) , Colombia's largest cigarette manufacturer, on Monday approved a share offer to sell up to 51.8 percent of the company, the firm said.

"It was approved unanimously," said Coltabaco president Dario Munera.

A date for the public stock offer has still to be announced, although company officials said it could be decided later this week.

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