Tobacco Documents Online

r . September 5, 1968 UNITED STATES TOBACCO JOURNAL 'American' Acquires Control of Gallaher American Tobacco Co, has acquired a controlling interest in Gallaher Ltd.,. Great Britain's second largest cig- arette company. Through a cash offer made several weeks ago to head off a competing bid for Gallaher by Philip Morris, Amer- ican Tobacco has built its holdings in 1 the British company to 88 per cent of. Y) the Gallaher common shares outstand- ing. ing, However, American Tobacco rep- ortedly ortedly plans to reduce its common shares holdings in Gallaher to 67 per cent. At' the time Philip Morris made its move towar& Gallaher, American To- bacco had already held nearly 13 per cent of the British firm. It is estimated that American Tobacco will have paid $115,000,000 for the additional shares to bring its holdings to 67 per cent. Philip Morris, which withdrew from the contest for Gallaher, last week re- ceived clearance from the British. Board of Trade to proceed with its ac- quisition of Godfrey Phillips Ltd., a smaller British tobacco concern whose cigarette brands are marketed primari- ly in the Orient. /t~U4 402,5 O_~_7f Lorillard Sets Dividend Lorillard Corp, has declared a reg- ular quarterly dividend of 671/ cents per common share, payablie October 1 to holders of record as of Septem- ber 6 this year. 9%~ 'b B_zWW3.LdW 'AdaNOW 'SM3i,1 .L3DINVW213df1S Lrfar -ovicfr ` ~ Zoew s Book ' ~j 11!1 erger V ote \- ' 2+7EW YOi~. ~ The boards ~_ of Zorillard Corp. and Loew'e ~, Theatres will meet this week to Cl vote on a merger. - . I V If . the proposal is approved v~ by the respective boards and shareholders, h,orillard stockhoid- n i ers will receive $62 principle ~ t amount of a Loew's 25-year sub- ordinated osdinated debenture paying in- ~~t terest of 6% per cent for each ehare of stock. They will' also n ~ get one-quarter of a warrant to `( purchase a share of Loew's stock ;;~~ at $110 per share. V Chairman of Loew's Theatres, v Laurence A. Tisch, stated the Loew's board will also consider ~ a 2-for-l: stock split at the time -~ THE WALL STREET JOURNAL, 12 ' Monday, September 9, 1968 of the mergeF. Should this be approved, each share of Loril- lard stock would then get one- _ half warrant to buy one share of the split stock at $55 per share. VF Loew's Theatres to Acquire Lorillard Stock in Market NEW YORK-Loew's Theatres Inc., whiFhh has announced plans to acquire Lorillard Corp., said it intende to buy Lorillard stock In the open market from time to time. Loew's and Lorillard's directors are expect- , ed to hold separate meetings this week to votee on the proposed merger. Loew's operates ho- tels and movie theaters. Lorillsrd is a major cigaret producer. , r ~_. . ". (9) / h