Jump to full article: Reuters, 2002-05-30
Author: Jessica Wohl
Intro: Philip Morris would maintain a presence in the global brewing business through its stake in SABMiller, but that could change in a few years.
"It is generally an industry that we like," Camilleri said. "If, in due time, we believe that this is a business we would like to increase our stake in, that is what we will do."
Philip Morris has agreed not to sell any shares until June 2005 and not to increase its stake until December 2004.
"They basically have a call option on the global beer business three years from now," said Prudential Securities tobacco analyst Rob Campagnino. "It just gives them a tremendous amount of flexibility."
Analysts said it is too early to know what Philip Morris would do.
"It's going to depend, I think, on what the litigation environment may look like at the time and where their stock price is," said Salomon Smith Barney's Herzog.
Analysts said that SAB's relationships with certain governments could help Philip Morris expand its international tobacco business.
Camilleri said during a morning conference call that "SAB's been very successful in China and I'm sure that over time they could probably help us both strategically and in terms of their contacts there."
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