Altria may have missed chance for merger of equals

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Tobacco companies Altria and Philip Morris International are talking about reuniting. But hopes of a true merger of equals may have burnt out, for now, writes tombuerkle.

Altria said on Aug. 27 that it was in discussions with Philip Morris International about a potential all-stock merger of equals. It said there was no assurance that the talks would lead to an agreement or transaction.

Altria spun off Philip Morris in March 2008 to allow the latter to pursue growth opportunities in emerging markets free of U.S. legal and regulatory constraints. Altria shares jumped more than 10% in early trading before settling back to $46.20 apiece, below their previous closing price, by noon New York time. Philip Morris stock was down around 5% at $74.20 after falling more than 10% in early trading.

 

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