Jump to full article: Agence France Presse (AFP) (fr), 2008-01-31
Author: contrast, PMI, which generated two-thirds of the group's
Intro: The new group, based in the Swiss city of Lausanne, would be free from litigation and public relations problems in the United States over tobacco marketing.
The announcement of the details of the spinoff cheered financial markets but outraged anti-tobacco groups, which accuse Altria of seeking to shelter itself from lawsuits and potentially more-restrictive tobacco laws in its home market.
The ratings agencies Moody's and Standard & Poor's underscored the financial advantages of the spinoff for the new independent PMI. . . .
The PMI move has drawn criticism from Essential Action, a corporate accountability organization based in Washington, which is working with groups in 70 countries, asking governments to mitigate the negative health effects it sees in the sale.
"The breakup of Philip Morris will unleash a Philip Morris International that will be even more predatory in pushing its toxic products worldwide," said Robert Weissman, director of Essential Action.
"An independent Philip Morris International ... will no longer feel constrained by public opinion in its home country and most important market, the United States," he added.
Anna White of Essential Action pointed to a recent case in which a US judge ordered tobacco companies to stop using misleading terms like "light" and "mild" to describe their products.
"If an independent PMI had no connection to the United States, the judge would not have been able to issue this order," she said.
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