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Europe, North America: Must have acceptable litigation, legal risks: CEO
Jump to full article: National Post (ca), 2002-05-25
Author: Sahm Adrangi / Financial Post, with files from Bloomberg News
Intro: Toronto-based cigarette maker Rothmans Inc. is back on the hunt for acquisitions in North America and western Europe, six months after it was outbid by R.J. Reynolds Tobacco Holdings Inc. in its attempted buyout of Santa Fe Natural Tobacco Co. Inc.
John Barnett, the company's chief executive officer, said in a conference call with analysts and investors that any acquisition must have "acceptable legal and litigation risks".
Analysts said that the alternative to an acquisition would be handing cash back to shareholders. "The Canadian market is continuing to shrink and if they can't put their capital to work somewhere else, the company will continue to shrink as well," said William Chisholm, an analyst with Dundee Securities Corp.
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