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R.J. Reynolds Shares Gain More Than 13 Percent Despite Huge Third-Quarter Loss
Jump to full article: AP, 2003-10-28
Author: Paul Nowell, AP Business Writer
Intro: R.J. Reynolds Tobacco Holdings Inc.'s shares gained more than 13 percent Tuesday as investors shrugged off the cigarette company's huge third-quarter loss and slumping sales, and focused instead on its plan to merge with rival Brown & Williamson.
RJR reported a net loss of $3.45 billion for the third quarter on the heels of an announcement late Monday that it would team up with B&W to create a stronger competitor to discounted brands and industry leader Philip Morris.
"We believe the new company will be highly efficient and well positioned to compete in the U.S. market," said RJR chairman and chief executive Andrew Schindler, who predicted the deal would provide "tremendous value to shareholders."
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