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Loews to Spin Off Lorillard, Newport Cigarette Maker (Update8) 

Loews Corp. will spin off Lorillard Inc., the oldest U.S. cigarette maker, into a separate public company 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, New York-based Loews said today. Carolina's share price implies a value of about $15 billion.

Tobacco stocks are among this year's best performers as investors seek companies whose earnings are likely to weather slower economic growth. Lorillard will spend less on dividends, giving it flexibility to buy back shares and make purchases as the industry consolidates, said Martin Orlowsky, who will continue to run the cigarette maker.

``It's a good move for Lorillard at a time of much activity in the tobacco industry,'

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