Categories
· Business (Tobacco)
· Smokeless
Organizations
· RJR
· UST
· Conwood
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The cigarette company's purchase of smokeless business Conwood for a surprising sum has analysts looking twice at Skoal parent UST
Jump to full article: Business Week, 2006-04-27
Author: Nanette Byrnes / NEWS ANALYSIS
Intro: Some analysts wondered after the announcement whether it might also make UST a more attractive acquisition target. The stock hit a month high of $44.92 the day Reynolds announced the Conwood deal. Cigarette companies are strong cash generators, and the most likely purchaser would seem to be Philip Morris, a unit of Altria and the maker of the dominant Marlboro cigarette brand. Both companies declined to comment, but after the price Conwood just pulled down, it would certainly be a costly target.
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