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Rothmans doesn't plan counterbid in battle for Santa Fe Natural Tobacco 

Jump to full article: Canadian Press, 2001-12-04

Intro:

TORONTO (CP) - Rothmans Inc., caught in a bidding war with R.J. Reynolds Tobacco Holdings Inc., says it doesn't plan to increase its offer for Santa Fe Natural Tobacco Co. but expects to receive a termination fee of $11 million US if R.J. Reynolds prevails.

"At present, Rothmans does not contemplate increasing the value of its enhanced offer announced on Nov. 30," the Toronto-based company said in a release Tuesday.

But Rothmans said its original deal with Santa Fe requires the New Mexico-based company to pay a breakup fee of $11 million US - in two instalments of $3 million and $8 million - if it chooses another offer.

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