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ASH Daily News for 31 October 2007

Imperial Tobacco's takeover of Altadis delayed

Imperial Tobacco, the maker of Davidoff and Lambert & Butler cigarettes, announced that its £8.8bn acquisition of Spain's Altadis would not be completed until January.

Gareth Davis, Imperial Tobacco's chief executive, said: "This has taken longer than we originally anticipated due to the changes in Spanish takeover rules in August."

The group is still waiting for approval by the Spanish regulatory authorities and it is expected shortly subject to Altadis shareholders voting in favour of the takeover.

Business Analyst, Jeremy Batstone-Carr, of Charles Stanley, said he expected more than €300m (£210m) of synergies from the deal: "The results are in-line and the outlook is fairly understated. It's all about getting Altadis on board."

Imperial Tobacco said it still planned to complete its rights issue, which is part financing the acquisition, before July 18 next year. Analysts expect the rights issue to total about £5bn.

The group would not be drawn on what it planned to do with some of the Altadis businesses after the acquisition. Analysts expect it to get rid of the Spanish group's logistics unit, and think it might also divest the cigar division, as it has no experience in that area.


Source: Guardian Unlimited, 31 October 2007
Link: http://tinyurl.com/ywt2ub

Nightclub group announce profits

The UK's largest nightclub operator, Luminar, posted a 56 per cent profits rise despite the English smoking ban.

The company, which operates the Oceana, Lava & Ignite and Liquid nightclubs, made underlying pre-tax profits of £12.6 million in the six months to August.


Source: The Scotsman, 31 October 2007
Link: http://tinyurl.com/2e3eog

Stores sold cigarettes to under-age girl

An teenage secret shopper in Wirral found that most shops are still selling cigarettes to under-age people.

Less than a month after the minimum legal age for buying tobacco was raised from 16 to 18, eleven out of 14 shops tested sold cigarettes to a 15-year-old girl.

The test purchases were organised by Wirral Trading Standards department, using a young volunteer test purchaser who asked for a pack of 20 cigarettes. 

Gill Gardner, Wirral’s Cabinet member for Environment said the survey was carried out during half-term at supermarkets, newsagents, garages and off-licences throughout Wirral.

She said "it showed the ease with which a child can still buy cigarettes. At no time was our test purchaser asked her age, nor asked for identification."

“Additionally, four premises also failed to display the warning sign required by law."

“The legal age was raised from 16 to 18 on the 1st October as a means of protecting the long term health of our children and I would implore retailers to act responsibly," she added.

“Whilst further action will be considered against those who sold cigarettes to our teenage volunteer, I would like to congratulate those responsible retailers who did refuse to sell.”

Source: Liverpool Daily Post, 30 October 2007
Link: http://tinyurl.com/2yrjpv

China: Campaign highlights the danger of smoking

Launching World Lung Cancer Awareness Month in November, medical experts warned that 87 per cent of people who die of lung cancer either smoke or suffer exposure to secondhand smoke. 

The Chinese Anti-Cancer Association said that 600,000 people die each year of lung cancer in China out of a population of 350 million smokers.

Public awareness regarding the dangers of smoking, government support to ban smoking in public venues and new medicines are all effective in preventing and controlling lung cancer, the association said.

Next month, the association will cooperate with Shanghai Roche Pharmaceuticals to launch free consultations in seven cities, including Shanghai, to promote knowledge of lung cancer, ways to quit smoking and information on new medicines to treat lung cancer.

A picture exhibition portraying the lives of seven lung cancer patients will also tour the cities to encourage patients to fight the disease.

Experts said quitting smoking is the most important step to control lung cancer.

Dr Xiao Dan, director of Beijing Respiratory Disease Research Institute's epidemic office said: "Smoking is a long term nicotine addiction and 90 to 95 percent of smokers fail to quit smoking if they don't receive professional help. Proper guidance from doctors and effective medication like nicotine replacement therapy can help people stop smoking gradually and successfully. Such therapies are recommended by the World Health Organization."

Source: Shanghai Daily, 31 October 2007
Link: http://tinyurl.com/yu6snh