Categories
· Business (Tobacco)
non-USA, by Country
· South Africa
Organizations
· BAT
· Richemont
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Burning issue: The industry is still in good shape, thanks to growth in developing countries, but rising taxes in developed countries are affecting business decisions
Jump to full article: Sunday Times (za), 2007-11-25
Author: Adele shevel
Intro: the announcement this week that Richemont and Remgro could spin off their combined 29.9% stake in British American Tobacco (BAT).
Analysts say large tobacco companies continue to deliver strong earnings growth and offer a defensive stock to investors, making a complete exit not first prize. And it is likely they will hold onto BAT as long as possible for cash flow reasons.
Grant Swanepoel, a luxury goods and tobacco analyst at Barnard Jacobs Mellet, said that Richemont needed to see how it could affect an unbundling that looked after European interests and did not negatively affect South African investors.
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