Tobacco Documents Online

eme,A& Inv Y'Owt 'A~-~~~¢ February 15, 1954 Philip Morris & Co. Ltd., Inc. 100 Park Avenue New York 17, New York Attention: Mr. L. G. Hanson Senior Vice-President & Treasurer Gentlemen: We acknowledge receipt of your letter of February 11th, and are pleased to furniah you our opinion, as follows: The closing price of the Cammon Stock of Philip Morris & Co., on the New York Stock Exchange, on January 27, 1951+, was $43•00 per share. would not have been changed if the inumber of shares offered had been' share, thereby netting the Compary a price of $33•$75 per share. In arriving at the above figure of $33•$75 per share, no consideration has been given to the expenses which would have been incurred by the Campany in connection with the offering. It is further our apiaion that the above per share figures In our opinion., if Philip Morris & Co. had offered 143*5b1 shares of its additional Common Stock for sale on that date, it would have realized a price of $33•875 per sharev The basis for our judgment, above set forth, is tha-~, since we have been advised by our counsel that, under applicable Virginia law, in the event of a sale of Canmon Stock by the Companyy it would have to have been offered to common stockholders of the Company by way of rights, an announcem.ent of the rights would have,, in our 3udgment, reduced the market price to approad.mately $40.00 per share., and, we would have recomnended an offering price to stockholders of $35.C+G per share with stanc~by underwriting c©mpensation in an amount of $l.iZ5~per reduced to 400.,000.