Altadis rejects Imperial’s $16-bn offer
Altadis, which sells Cohiba cigars and Fortuna cigarettes, rejected a sweetened takeover bid by Imperial Tobacco Group that values the company at $16 billion, saying the price is still too low.
By Agencies |
MADRID: Altadis, which sells Cohiba cigars and Fortuna cigarettes, rejected a sweetened takeover bid by Imperial Tobacco Group that values the company at $16 billion, saying the price is still too low. Imperial Tobacco raised its offer to 47 euros a share from 45 euros in cash, Madrid-based Altadis said in a regulatory filing on Tuesday.
The offer is 1.5% below the closing price on April 5, the last day the shares traded. Altadis turned down the first offer, which was unsolicited, on March 16. Tobacco mergers have increased since Japan Tobacco agreed in December to pay £7.5 billion for Gallaher Group.
Buying Altadis would give Imperial the Gauloises brand and the world’s biggest cigar company as government crackdowns cause its main markets to shrink. “We’re entering the endgame in worldwide tobacco industry consolidation,” said Andy Brough, who helps oversee about $7.6 billion at Schroder Investment Management in London. ”This is one of the last targets left for Imperial.”
The new offer “represents a full and fair price” for Altadis, Imperial Tobacco said in a Regulatory News Service statement. The UK cigarette maker said combining with Altadis would be “strategically compelling and in the interests of both companies’ shareholders.”
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