London Tabloid Rumor: BAT To Acquire Reynolds American
A rumor resurfaced Wednesday that Reynolds American (NYSE: RAI) will be fully acquired by British American Tobacco plc.
Citing only "smoke signals rising from British American's headquarters," the British tabloid Daily Mail reported that the company is "on the verge of a mega deal."
British American Tobacco already owns about 42 percent of Reynolds American.
If so, the tabloid says, it would "snuff out" prospects for Reynolds to acquire Lorillard (NYSE: LO), a transaction that's also been rumored of late.
In pre-market trading, Reynolds was up two percent at $62.49; Lorillard was down nearly one percent at $62.48. On the London stock exchange, British American was nearly unchanged at $3,552.50.
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