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Thursday, July 3, 2014

Tobacco majors Lorillard and Reynolds American near merger - CNBC, (AMEX: BTI), (NYSE: LO), (NYSE: RAI)

Tobacco majors Lorillard Inc and Reynolds American Inc are likely to merge as early as end of July, CNBC reported, citing sources. Reuters, in May, exclusively reported that Reynolds American was in active discussions to purchase Lorillard in a complicated, three-way transaction that could see British American Tobacco PLC take a major role to back a potential merger.Lorillard share rose as much as 6.2 percent, while those of Reynolds American were up nearly 3 percent.Imperial Tobacco Group Plc was evaluating a deal for assets likely to be divested from Reynolds American and Lorillard if the two U.S. tobacco companies proceed with a proposed combination, Reuters reported last month.Lorillard had a market capitalisation of $22.17 billion as of Wedesday's close, while Reynolds' market value was $32.25 billion.

British American Tobacco p.l.c. (British American Tobacco) is a holding company. Shares of BTI traded higher by 1.31% or $1.59/share to $122.91. In the past year, the shares have traded as low as $94.19 and as high as $123.02. On average, 227152 shares of BTI exchange hands on a given day and today's volume is recorded at 106015.

Lorillard, Inc. (Lorillard) is the manufacturer of cigarettes in the United States. Shares of LO traded higher by 6.82% or $4.17/share to $65.32. In the past year, the shares have traded as low as $41.56 and as high as $65.28. On average, 2989620 shares of LO exchange hands on a given day and today's volume is recorded at 2791941.

Reynolds American Inc. (RAI) is a holding company. Shares of RAI traded higher by 2.73% or $1.64/share to $61.80. In the past year, the shares have traded as low as $46.55 and as high as $62.64. On average, 2175320 shares of RAI exchange hands on a given day and today's volume is recorded at 2250951.



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