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· Rothmans B&H
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Company behind Marlboro offers $2-billion for largest Canadian-owned cigarette maker
Jump to full article: Globe and Mail (ca), 2008-08-01
Author: PAUL WALDIE
Intro: At the same time, Rothmans was ending its impressive 2008 fiscal year and negotiating settlements with the federal and provincial governments to resolve a prolonged RCMP investigation. Police alleged that between 1989 and 1996, Rothmans and Imperial exported tax-free cigarettes to locations in the United States near the Canadian border, helping smugglers get the smokes back into the country. The companies were allegedly trying to protect their market share in the face of soaring tobacco taxes and growing contraband cigarettes.
In early April, Philip Morris "came forward and said, 'I don't know whether this clarifies the situation or not but we would be interested in making an offer for all the outstanding shares of Rothmans Inc. The only thing we would like to see is some resolution of those discussions,' " Rothmans spokesman Barry Joslin said. "So they asked for clarity and certainty, in that regard, and those discussions moved forward."
Yesterday, Rothmans and Imperial announced they had settled the charges and will pay more than $1-billion in total fines and penalties over the next 10 years. Moments later, Rothmans and Philip Morris announced the takeover bid.
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