Tobacco Documents Online

{ ~'IrjSrtttr•~~~ ll tiltt R-~tG~Igtft~ ~ RiCHPi101D. YIRGIIWIA. D~ 143i~r: ~~1i:. 199,297 A!J G 1 9 1968 Philip Morris Bids to Control British Firm LONDON(AP)' - Philip Morris, the. American cigarette company, has bid 11.5 million pounds--S27.6 million-to take over the British tobacco firm of Godfrey Phillips, makers of Muratti and Abdulla cigarettes. A joint statement issued yesterday by M the two companies said'. "Terms have ~ been agreed for the acquisition by Philip ~ Morris for cash of the whole of the issued v` ordinary share capital of Godfrey ~ t Phillips." The American company agreed to buy Q1 839,625 ordinary shares at 20 cents each,. ~ a total of $1.64 million. The shares, mainly held by family directors of the N British firm, represent 36 per cenb of the ~ votes of the ordinary capital. Philip Morris also offered to buy all ~ outstanding one-pound ($2.40) ordinary \ stock units. " Firm Has U.S Interests Godfrey Phillips has interests in the United States in tobacco, greeting card' and printing businesses. It has affiliates and interests in Australia, New Zealand, India, Pakistan, Ceylon, and Malaysia. The statement sai& British government currency exchange controL authorities are expected to consent to the deal. Philip Morris earlier failed in a bid to buy control of the giant British Gal, lahers firm that manufactures Senior Service cigarettes. Godfrey Phillips, head of the British firm~ said 87 per cent of its profits in 1967 came from its overseas operations, The company's annual report showed a net profit last year of $1;816,228.80. Philip Morris Offerstsuy AUG 19 1968 ~ s British Firm, CQd.fre y Philliss ~ ~~ _~ _ `_ _ LONDOht` t81-- the American cigarette com- pnay, has made a;`bid of 11.5 million pounds ($27:6 million). t'o takeover the British tobacco f i'r m of Godfrey Phillips, makers of Muratti and, Abdulla cigarettes. A joint statement' issued yes- terday by the two companies s a i d: "Terms have been agreed for the acquisition by Philip Morris for casb of the whole of the issued ordinary sh4Lre capital of Godfrey Phil- li .'~..~, T h,e American company companies and interests in i agreed to buy 839,625 ordinary shares at 20 cents each, a total of $1.46 million. -The shares, mainly held by family directors of the British firm, represent 38 per cent of the votes of the flr- dinary capital. -Interest In U. S. Philip Morris also offered to ~buy allout'standing one-pound ($2.40) ordinary stock units. Godfrey Phillips has inter- ests in the United States in to- bacco, greeting card and print- -ing businesses. It has affiliated 'IIIC CI1 1WPTTE NEWS CNAR1.0'TTE, N. C. AU G 1 6 1968 rfrom The Wire~ NEW YORK (1Pi - -DSn Morris Inc. said yesterday it o m end to make a further offer for shares of Gallaher Ltd:. Britain. Philip Morris' origi,nal offer ~ for the British tobacco firm, ~ June 27, >sas permitted to c-N expire July 31. ` ,"- Q Gallaher shares fell sharpty , ~. in after-hours trading on the , London Stock Exchange yester- ~ day, after a strong rise based lli;~3 on rumors tflat Philip Morris ,~, would renew its offer. The withdrawal leaves tha way open for an American Tobacco Co. offer for half' the Gallaher equity at $4.20 a share. i Philip Morris' original offer was for 5o per cent of Gallancr ordinary shares at $3 each,or a total dollar offer of $100 mil- lion. Australis, New Zealand, India, Pakistan;, Ceylon and Ma- laysia. It manufactures Vis- count, Black and White, Murat- tfan Ambassador and other cigarettes and tobacco prod- ucts. The statement said assur- ances had been received that British government currency exchange control authorities would,consent to the deal. Philip Morris earlier failed in a bid to buy control of the giant British Gallahers firm, manu- facturer of Senior Service ciga- rettes. "A Good Offer" Rumors circulated last week that' the American firm was making another bid', for Galla- hers when George Weissmanij president and' chief operating officer of Philip Morris, ar- rived rived in London. Weissman and Hugh Cullman, president of Philip Morris, International, headed the negotiating team for the Godfrey Phillips bid. Godfrey Phillips, bead of the i British firm, said the bid was I"a good offer" atid the com- ~ p a n y had' been "fighting against international com- p a n i e s with resources far greater tbhn our9; " He said 87 per cent of God- frey Phillips' profits itl 1967 came from fta overseas oper- ations. The company's annu report showed a net profit la year of ,$1,816,228:80. ` I fim