ASH Daily News for 29/10/2003
HEADLINES
ASH, 102 Clifton Street, LONDON, EC2A 4HW.
Tel 020 7739 5902 Fax 020 7613 0531
ASH Daily News
29 October 2003
HEADLINES
This is London polling
Smokers can stub out their habit for free
BAT hopes light up Gallaher
BAT investors gloss over 20% fall in profit
RJR shares rise despite loss
Anti-trust issues fail to dent confidence in tobacco deal
FULL TEXT
This is London polling
Sky news reports on Londoners being asked whether they want smoking outlawed in public places such as pubs, bars and restaurants.
The London Health Commission is asking people where they think smoking should be allowed in the capital.
The results of the Big Smoke Debate could lead to an increase in smoke-free venues, following New York's example.
Sky news then asked online readers if you think smokers should be banned from lighting up in certain public places. The link to the Sky news story has a selection of the views (unrelated to the LHC survey).
LHC London survey:
http://www.bigsmokedebate.com
BBC Online coverage:
http://news.bbc.co.uk/1/hi/england/london/3219233.stm
Link to Sky news story:
http://www.sky.com/skynews/article/0,,30100-1108960,00.html
Source: Sky News, 28 October 2003
Smokers can stub out their habit for free
Smokers can now kick the habit at work thanks to a new scheme which holds quitting roadshows at the office.
The free Stop Smoking Service, backed by Bracknell Forest Primary Care Trust, wants companies in the town interested in hosting the roadshows to get in touch.
It already runs nine specialist clinics throughout east Berkshire, including two at the Skimped Hill health complex in Bracknell, and has just helped 55 Masterfoods employees in Slough quit smoking after a successful roadshow.
Full article linked from:
http://www.tobacco.org/news/141694.html
BAT hopes light up Gallaher
Gallaher shares soared 5 per cent yesterday on hopes that the owner of Benson & Hedges and Silk Cut cigarettes is set to become the next takeover target of British American Tobacco (BAT).
The share price rise came after BAT confirmed that it was keen to make acquisitions despite unveiling plans on Monday to merge its US business with RJ Reynolds, a major American rival.
BAT, whose chairman is Martin Broughton, said yesterday that it aims to make further "sizeable" acquisitions, adding that it would have no problem funding them. The company's remarks prompted a 26p rise in Gallaher's share price - whose chief executive is Nigel Northridge - to 596p.
Times article:
http://www.timesonline.co.uk/printFriendly/0,,1-5-872202,00.html
Source: The Times, Financial Times, 29 October 2003
BAT investors gloss over 20% fall in profit
British American Tobacco reported yesterday a 20% fall in profits in its first nine months but investors ignored the figures and preferred to focus on its $7bn deal with US rival RJ Reynolds.
Both BAT's US subsidiary, Brown & Williamson and its new merger partner, RJR, struggled against low-price competition on the other side of the Atlantic in their third quarter. "It's a very fierce market out there," said BAT chairman Martin Broughton.
BAT announced the $7bn (£4bn) merger of Lucky Strike owner B&W and Camel manufacturer RJR late on Monday night and will retain a 42% stake in the new company.
The reasons behind the merger were clear yesterday when US company RJR reported a hefty $3.4bn loss in its third quarter as it wrote down the value of its trademarks and took $310m in restructuring charges related to job losses.
BAT reported a 20% drop in pre-tax profit to £1.3bn, due in part to the costs of closing down factories in the UK and Canada. It also reported falling profits at B&W. "In the US market, industry profitability was severely affected by continued competitive pricing and promotional activities," BAT said in a statement.
Guardian article:
http://www.guardian.co.uk/business/story/0,3604,1073104,00.html
Source: The Guardian, 29 October 2003
RJR shares rise despite loss
R.J. Reynolds Tobacco Holdings reported huge third-quarter losses Tuesday, a day after the cigarette maker agreed to merge with Brown Williamson to bolster itself against competition from discounted brands and a series of lawsuits.
RJR shares rose 11 percent on the news in afternoon New York trading as investors shrugged off RJR's net loss of $3.45 billion for the third quarter, largely from charges related to a restructuring announced last month, and focused on the merger.
The company announced the merger late Monday. The new company will produce one of every three cigarettes in the United States.
R.J. Reynolds will pay $2.6 billion in cash and stock for a 58 percent controlling stake in the new company.
"We believe the new company will be highly efficient and well positioned to compete in the U.S. market," said the RJR chairman and chief executive, Andrew Schindler.
RJR shares climbed $4.78 to $48.03 in afternoon trading on the New York Stock Exchange.
Full article:
http://www.iht.com/ihtsearch.php?id=115482
Source: NYT, Bloomberg, AP, 29 October 2003
Anti-trust issues fail to dent confidence in tobacco deal
Investors rushed to re-rate shares in British American Tobacco following its decision to combine its United States arm with rival RJ Reynolds, ignoring the potential anti-trust hurdles that the $6.2bn (£3.7bn) deal poses.
BAT shares surged 12 per cent despite weaker quarterly results that drew attention to problems the group's Brown & Williamson subsidiary is facing in America.
The company hopes the tough US trading environment, which was highlighted by RJR's $3.45bn third-quarter loss, will prompt the Federal Trade Commission (FTC) to take a lenient view of the duopoly that will exist with the creation of Reynolds American.
RJR shareholders also welcomed the deal, focusing on the scale that the effective takeover of B&W will provide and the $500m cost savings rather than the deal's full price. Shares in the US company leapt 12 per cent in early trade.
Full Independent coverage:
http://news.independent.co.uk/business/news/story.jsp?story=458299
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Tel 020 7739 5902 Fax 020 7613 0531
ASH Daily News
29 October 2003
HEADLINES
This is London polling
Smokers can stub out their habit for free
BAT hopes light up Gallaher
BAT investors gloss over 20% fall in profit
RJR shares rise despite loss
Anti-trust issues fail to dent confidence in tobacco deal
FULL TEXT
This is London polling
Sky news reports on Londoners being asked whether they want smoking outlawed in public places such as pubs, bars and restaurants.
The London Health Commission is asking people where they think smoking should be allowed in the capital.
The results of the Big Smoke Debate could lead to an increase in smoke-free venues, following New York's example.
Sky news then asked online readers if you think smokers should be banned from lighting up in certain public places. The link to the Sky news story has a selection of the views (unrelated to the LHC survey).
LHC London survey:
http://www.bigsmokedebate.com
BBC Online coverage:
http://news.bbc.co.uk/1/hi/england/london/3219233.stm
Link to Sky news story:
http://www.sky.com/skynews/article/0,,30100-1108960,00.html
Source: Sky News, 28 October 2003
Smokers can stub out their habit for free
Smokers can now kick the habit at work thanks to a new scheme which holds quitting roadshows at the office.
The free Stop Smoking Service, backed by Bracknell Forest Primary Care Trust, wants companies in the town interested in hosting the roadshows to get in touch.
It already runs nine specialist clinics throughout east Berkshire, including two at the Skimped Hill health complex in Bracknell, and has just helped 55 Masterfoods employees in Slough quit smoking after a successful roadshow.
Full article linked from:
http://www.tobacco.org/news/141694.html
BAT hopes light up Gallaher
Gallaher shares soared 5 per cent yesterday on hopes that the owner of Benson & Hedges and Silk Cut cigarettes is set to become the next takeover target of British American Tobacco (BAT).
The share price rise came after BAT confirmed that it was keen to make acquisitions despite unveiling plans on Monday to merge its US business with RJ Reynolds, a major American rival.
BAT, whose chairman is Martin Broughton, said yesterday that it aims to make further "sizeable" acquisitions, adding that it would have no problem funding them. The company's remarks prompted a 26p rise in Gallaher's share price - whose chief executive is Nigel Northridge - to 596p.
Times article:
http://www.timesonline.co.uk/printFriendly/0,,1-5-872202,00.html
Source: The Times, Financial Times, 29 October 2003
BAT investors gloss over 20% fall in profit
British American Tobacco reported yesterday a 20% fall in profits in its first nine months but investors ignored the figures and preferred to focus on its $7bn deal with US rival RJ Reynolds.
Both BAT's US subsidiary, Brown & Williamson and its new merger partner, RJR, struggled against low-price competition on the other side of the Atlantic in their third quarter. "It's a very fierce market out there," said BAT chairman Martin Broughton.
BAT announced the $7bn (£4bn) merger of Lucky Strike owner B&W and Camel manufacturer RJR late on Monday night and will retain a 42% stake in the new company.
The reasons behind the merger were clear yesterday when US company RJR reported a hefty $3.4bn loss in its third quarter as it wrote down the value of its trademarks and took $310m in restructuring charges related to job losses.
BAT reported a 20% drop in pre-tax profit to £1.3bn, due in part to the costs of closing down factories in the UK and Canada. It also reported falling profits at B&W. "In the US market, industry profitability was severely affected by continued competitive pricing and promotional activities," BAT said in a statement.
Guardian article:
http://www.guardian.co.uk/business/story/0,3604,1073104,00.html
Source: The Guardian, 29 October 2003
RJR shares rise despite loss
R.J. Reynolds Tobacco Holdings reported huge third-quarter losses Tuesday, a day after the cigarette maker agreed to merge with Brown Williamson to bolster itself against competition from discounted brands and a series of lawsuits.
RJR shares rose 11 percent on the news in afternoon New York trading as investors shrugged off RJR's net loss of $3.45 billion for the third quarter, largely from charges related to a restructuring announced last month, and focused on the merger.
The company announced the merger late Monday. The new company will produce one of every three cigarettes in the United States.
R.J. Reynolds will pay $2.6 billion in cash and stock for a 58 percent controlling stake in the new company.
"We believe the new company will be highly efficient and well positioned to compete in the U.S. market," said the RJR chairman and chief executive, Andrew Schindler.
RJR shares climbed $4.78 to $48.03 in afternoon trading on the New York Stock Exchange.
Full article:
http://www.iht.com/ihtsearch.php?id=115482
Source: NYT, Bloomberg, AP, 29 October 2003
Anti-trust issues fail to dent confidence in tobacco deal
Investors rushed to re-rate shares in British American Tobacco following its decision to combine its United States arm with rival RJ Reynolds, ignoring the potential anti-trust hurdles that the $6.2bn (£3.7bn) deal poses.
BAT shares surged 12 per cent despite weaker quarterly results that drew attention to problems the group's Brown & Williamson subsidiary is facing in America.
The company hopes the tough US trading environment, which was highlighted by RJR's $3.45bn third-quarter loss, will prompt the Federal Trade Commission (FTC) to take a lenient view of the duopoly that will exist with the creation of Reynolds American.
RJR shareholders also welcomed the deal, focusing on the scale that the effective takeover of B&W will provide and the $500m cost savings rather than the deal's full price. Shares in the US company leapt 12 per cent in early trade.
Full Independent coverage:
http://news.independent.co.uk/business/news/story.jsp?story=458299
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