Jump to full article: Globe and Mail (ca), 2002-02-23
Author: OLIVER BERTIN / FOOD INDUSTRY REPORTER Saturday, February 23, 2002 – Page B44
Intro: Rothmans Inc. may have lost round one in its bid to buy Santa Fe Natural Tobacco Co., but it cleaned up in round two: It was paid $11.5-million (U.S.) in termination fees.
That sum was enough, Rothmans said in releasing third-quarter financial results, to raise profit by 1 cent (Canadian) a share in the third quarter and another 30 cents in the fourth quarter after the cost of the bid is deducted.
Rothmans' share price rose by 30 cents on the Toronto Stock Exchange yesterday to close at $31.80.
"We were very disappointed" when Rothmans lost Santa Fe in December to a competing bid by R.J. Reynolds Tobacco Holdings Inc., said John Barnett, president and chief executive officer of the Toronto-based company. But that did not discourage him from pursuing further acquisitions.
"We have a pro-active program" to make another acquisition, he said in a conference call with analysts yesterday following the release of the company results.
He added that the company was aggressively looking for a North American tobacco company that will take Rothmans into the international market.
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