March 22, 2009 / 5:51 PM / 10 years ago

Lorillard could be takeover target - Barron's

NEW YORK, March 22 (Reuters) - Lorillard Inc LO.N, maker of Newport cigarettes, could be a takeover target, perhaps at a “sizable” premium to its current share price, according to the latest issue of Barron’s.

“There lately has been talk that Reynolds RAI.N, maker of the Camel, Winston and Kool brands, might buy Lorillard for a sizable premium above the recent share price of $61,” Barron’s reports in its March 23 issue.

It said Reynolds and Lorillard declined to comment.

Barron’s also reports that, “If Lorillard does go on the block, there could a bidding war that includes Reynolds, Britain’s Imperial Tobacco IMT.L, Japan Tobacco (2914.T) and perhaps even Philip Morris International (PM.N).”

The article said that even if Lorillard is not a takeover target, its shares may be undervalued.

“Lorillard has the best developed-market tobacco business in the world,” David Adelman, the cigarette analyst at Morgan Stanley, was quoted as saying. (Reporting by Paul Thomasch; editing by Richard Chang)

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