Wells Fargo: BAT Acquisition Of Reynolds American Won't Fly
An analyst threw cold water on the London tabloid rumor Wednesday that Reynolds American (NYSE: RAI) will be fully acquired by British American Tobacco plc.
Wells Fargo's Bonnie Herzog noted that Susan Cameron, who returned as Reynold's chief executive in May, is unlikely to facilitate a sale of the company within months of her return.
Cameron earlier served as Reynold's chief executive from 2004 to 2011.
The British tabloid Daily Mail reported earlier Wednesday that British American "is on the verge" of acquiring Reynolds, citing "smoke signals from headquarters."
But Herzog said even if British American were to buy Reynolds, Lorillard (NYSE: LO) would still be snapped up in an acquisition by the merged companies.
Reynolds, which opened sharply higher Wednesday, traded recently up 2.5 percent at $62.86. Lorillard traded up recently 0.43 percent to $63.20.
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