Tobacco Documents Online

., C ~ C;r"a(,3lrrnal,~f:~nmmerxl' ~iF'i~ yORI~ N. Y~:, AU G 2 8 1968 ~ News in Brief US Firms Enlarg*e" UK Cigarette Stakes Special to Joarnal of Commerce LONDON, Aug. 27-Recent U. S. moves to win a bigger stake in Britain's cigarette industry moved ahead today on~ two fronts. The Lucky Strike cigarette firm, American Tobacco Co., now controls Britain's second largest ciga- rette making concern of Gallaher Ltd. following its con. troversial takeover bid. The Merchant Bank handling the deal, announced the news. '4- Another U. S: group, Plujaa the British bank and stockbro- ~ Morris Inc., also got, official kers' firm which, arranged the I confirmation from the govern- offer. ment that its Monopolies Com- mission will not'be asked to iq- uire into the Morris bid worth U.5 million ($27.6 million) for e smaller Godfrey Phillips nceimi Phillips makes Abdul- a Cigarettes and mainly sells overseas, ~ I Earlier Philip Morris had been beaten by American Tobacco ;in a bid for Gallaher. ' Bankers Morgan Grenfell said today that the American To- bacco Co:'s bid to buy just over one half of Gallaher Ltd. shares had resulted in "substantially more" than the 27,32500 shares being offered. Counting was etilll going on. The Gallaher takeover came tuider heavy public criticism be- cause of the methods used by ~~,hr ~ir3ilti~ttt-~?iLut NORFOLK, VA. p, 1;;,503 suN. 170,122 AU G 16 1968 ~ VENDfN6 TIMES NEW YORK, N. Y. MONTHLY 10,000 JU l. 1968 A. Philip Morris ~ Cancel Call :I _I For Gallaher I " \,fj NEW YORK (AP) - Phi irr ~, orn5. n~ said Thurs a^y ~!~ V- bed s not intend to make iC further offer for shares of Gallar Nher. Ltd., of Britain. _ ~ ' P$ilip, Morrris' original offet for the :British tobacev firnr V~ June 27 was permitted to expira. - (~ July 31: - _ G11 h a a er snares fell' sharply irp after-hours trading on the Lop,.: dor, Stock Exchange Thursda ~ Iafter a strong rise based orr rumors that Philip Morris woull~ ., The withdrawal leaves tke way open for an American T(Z bacco Co; offer for half thr Gallaher equity at $4.20 a share. Philip Morris' original offe= was for 50 1per cent of Gallaher ordinary shares at $3 each or ~ j tbta[ offer of $110 million. ' ~ renew its offer. IPhilip -Morris Sets Sales & Earnings Record Net Income after taxes fo; 14.8 per cent. the second quarter of 1968 was, $12,141,000 compared with $10,471,000 for the second quar- ~ ter of 1967, up 15.9 per cent. " Per share earnings were $1.09 against 944. Consolidated operating rev- enues for the quarter were $252;321,000 com pared with $229;990,000 in, the second quar- ter of 1967; an increase of 9.7 per cent. ~ ~ NEW YORK CITY -- Philip Earnings for the first six bJQrriS. Inc. reported record: con- months of 1968 rose 15.3 per solidated: operat'ing revenues and cent to $22,513,000 compared net income after taxes, includ- with $19,523,000 for the com- ing the new 10 per cent sur- parable six months of 1967. Per charge, for the second quarter -share earnings were $2.02 and the first six months of 1968. against $1.76, an increase of For the first six months of 1968, consolidated operating rev- enues were $82,236,000 compared with $437,280,000 for the com-,5 parable six months in 1967, an increase of 10.3 per cent. Joseph F. Culiman„ 3rd, chair- man and chief executive officer, stated that unit cigaret sales had increased for both Philip Morris Domestic and Philip Mor- ris International in the past' six months. The performances of both Marlboro and Benson & Hedges 100's were particularly strong, he said. Also announced was that on July 8, the •Grm formally ten- dered an offer to purchase 36,828;000, or 50 per cent, of ; the Ordinary Shares of Gallaher " Ltd., the second largest tobacco company in the United Kingdom.