Tobacco.org

• Loews to Spin Off Lorillard, Newport Cigarette Maker (Update4) 

Lorillard Inc., the oldest U.S. cigarette company, will be spun off by Loews Corp. as New York's billionaire Tisch family capitalizes on rising prices for tobacco stocks.

Holders of Loews and its Carolina Group tracking stock for the tobacco unit will get shares in Lorillard, whose brands include Newport and Kent, the New York-based company said today. . . .

``Tobacco is not a strategic asset for us,'' said Loews Chief Executive Officer James Tisch in an interview. ``The company can do better as an independent.''

The spinoff of Lorillard should improve Loews's ``risk profile in the eyes of rating agencies and equity investors,'' he said in a conference call with investors and analysts.

Jump to full article »