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• Lorillard May Be Takeover Target After Spinoff (Update1) 

Lorillard Inc., the cigarette producer being spun off by Loews Corp., may attract takeover bids from Reynolds American Inc. and Imperial Tobacco Group Plc as shrinking U.S. cigarette demand forces manufacturers to combine, according to reports from two analysts.

Lorillard will be spun off June 10 and trade on the New York Stock Exchange. Investors should buy the stock to take advantage of a potential merger, a possible share buyback and its addition to the Standard & Poor's 500 index, Erik Bloomquist, an analyst at J.P. Morgan Securities Ltd., said today in a research note.

``It's very clear the industry will see more consolidation,''

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