Tobacco.org

Altria’s former CEO weighs in on UST - Postcards 

Remember Geoff Bible, the swashbuckling Aussie who led Philip Morris until 2002? I ran into him at the U.S. Open just as rumors were flying that Altria (MO), as the the tobacco giant is now known, was about to buy UST.

Now Altria has announced its $10.3 billion deal to acquire UST, the smokeless tobacco leader that markets Copenhagen and Skoal. And Bible, who is still an Altria shareholder, offers his take: "In principle, UST is a savvy deal, especially given the slowing U.S. cigarette market. I'm too removed from the businesses these days to talk about price, but they are clever managers. They do not do dumb things, do their homework thoroughly, and have a great balance sheet. They ought be able to wring out very good revenue and overhead synergies."

Actually, the U.S. cigarette business is more than slow. It's declining-at an accelerating rate, say analysts. Actually, the U.S. cigarette business is more than slow. It's declining-at an accelerating rate, say analysts. Perhaps this is because diehards are kicking the habit? Newsflash: Bible, for one, finally quit. . . .

"I'm old," Bible told me, suggesting that it's time. He's 71, still feisty, and he appears quite fit.

Jump to full article »