Categories
· Business (Tobacco)
Organizations
· ITY
· Commonwealth
|
Jump to full article: AP, 2007-02-13
Author: VINNEE TONG AP Business Writer
Intro: The proposed $1.9 billion takeover of Commonwealth Brands by Imperial Tobacco Group PLC opens the door to more acquisitions, most likely in a year's time, according to Citigroup analysts.
"Now that Imperial has blazed a trail, you could well see more acquisitions," London-based Citigroup tobacco analyst Adam Spielman said on a conference call Tuesday.
But Spielman, as well as Citigroup's U.S. tobacco analyst, Bonnie Herzog, said the Commonwealth acquisition could delay any others for another 12 months, when more deals were expected within the next quarter. The Imperial deal complicates the acquisitions situation for any potential suitors, Spielman said.
Herzog said the deal is a validation that the litigation environment for tobacco companies has improved and a sign that other non-American manufacturers could follow Imperial into the highly profitable U.S. market.
Jump to full article » |