Blu Cigs to be bought out
Reynolds American Inc. and British American Tobacco Ltd. are rumoured to be looking at a Blu Cigs acquisition again.
The UK Daily Telegraph reports that “BAT has engaged financial advisers USB, Deustche Bank and Centerview” This sort of move normally come when they are planning a move. There is every liklihood that BAT will make this move or for Imperial Brands PLC.
Any Imperial/BAT merger is not likely to influence the U.S. market straightaway, but will grow eventually.
Centerview were also heavily involved in the purchase by Imperial on the Blu Cig brand and numbers of around $50 billion are being punted this time
Blu Cigs, Quote from the article:
“It is unwise to chase rumors such as this, even when they seem to have at least a kernel of truth to them,” said John Abbink, a contributing analyst to Seeking Alpha financial research firm. “On the other hand, it is also unwise to ignore them entirely. BAT certainly seems to be up to something, and the lessons it learned from its ill-fated diversifications in the 1980s strongly suggest that, whatever it is, it will be within the tobacco business.”
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