Categories
· Business (Tobacco)
· Business (General)
Organizations
· LTR
· Lorillard
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(Adds comments from a conference call, stock price.)
Jump to full article: Dow Jones via Nasdaq, 2007-12-17
Intro: Loews Corp. (LTR) plans to spin off tobacco company Lorillard Inc., giving the seller of Newport and Kent cigarettes more flexibility to use its cash for acquisitions and share buybacks as a separately traded company.
The move would eliminate Loews Corp.'s Carolina Group (CG) tracking stock and could allow Lorillard - which currently pays all its net earnings to parent company Loews - to become a stronger competitor in the U.S. tobacco industry, where cigarette volumes are declining.
"The U.S. tobacco market has undergone substantial changes...competitors are making moves to improve their positions," Loews Chief Executive James S. Tisch pointed out during a conference call.
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