Tobacco Documents Online

"Two B.A.T. Affiliates Have Ratings Lowered" Wall Street Journal (El7/12/94) P. C10 Standard & Poor's Ratings Group lowered the debt ratings for two entities related to B.A.T Industries PLC. S&P cut the ratings for B.A.T Capital Corp. and British-American Tobacco Investment to single-A-plus from double-A-minus, citing the more competitive nature of the U.S. tobacco market and the possibility of "an increasing number of restrictions" in the U.S. tobacco industry. If the proposed $1 billion acquisition of American Tobacco Co. from American Brands Inc. is completed, S&P stated, B.A.T's exposure to the U.S. tobacco business would increase significantly. S&P also said the long-term risk associated with the pending acquisition outweighs short-term cash-flow benefits. "S&P Affirms Dibrell Brothers Ratings" Reuters (07/1 1/94) Standard & Poor's Corp. has affirmed its B-plus subordinated debt rating of Dibreil Brothers Inc. and changed the outlook to stable from positive. S&P said the revised outlook reflects the firm's overall weakened operating position due to the oversupply of leaf tobacco, other near-term tobacco industry trends, and the continued weakness in its flower segment that limits improvement in profitability in the intermediate term. The rating reflects Dibrell's position as one of the leading independent leaf tobacco processors and a worldwide wholesale purchaser and seller of fresh cut flowers, according to S&P. "Standard Commercial Cut to 'Hold' by Prudential" Reuters (07/11/94) Prudential Securities said it downgraded tobacco processor Standard Commercial Corp. to "hold" from "buy." The brokerage confirmed that an analyst downgraded Dibrell Brothers Inc. to "sell" from "hold" and cut Monk-Austin Inc. to "hold" from "buy." Standard Commercial shares were off .625 at 14.75, Dibrell dropped 1.125 to 13.875, and Monk-Austin lost.375 to 12.125. . "Unlucky Strikes" Washington Post--Health (07/12/94) P. 5 Twenty Major League Baseball parks have banned smoking in all seats and 16 refuse tobacco advertising. Some stadiums, like Chicago's Comiskey Park and the Milwaukee County Stadium, have smoke-free sections. Yankee and Shea stadiums in New York allow smoking, but a municipal anti-smoking ordinance may soon overrule n I

them. Boston's Fenway Park will post no tobacco ads after 1995, and Colorado's new Coors Field will also ban the ads. "Baseball-Dental Group Urges Tobacco Ban by Players" Reuters (07/'f 1/94) The American Dental Association on Monday called for a ban on the use of chewing tobacco and snuff by Major League Baseball players during games. "Without a doubt studies show that snuff and chewing tobacco are culprits in a variety of serious health conditions, including oral, pharyngeal, oesophageal cancer, and periodontal diseases," said John Greene, dean of the University of California School of Dentistry. Greene was the chief researcher in a new study released by the Chicago-based association involving professional baseball players. Many of the players partaking in the study were found to have lesions and other problems during the oral examination, and made serious efforts to quit using tobacco, according to the study results. "Executive Suite: Michael Miles--Unemployed and Loving It" Business Week (7/18/94) P.32; Zinn, Laura Michael A. Miles, late of Philip Morris, is America's most eligible executive. Miles, PM's CEO, called it quits on June 17, facing near- unanimous antagonism from his directors and from former Chairman Hamish Maxwell--who had voted against splitting Philip Morris into food and tobacco units three weeks before. It wasn't the most graceful of exits. Miles won't talk much about Philip Morris or his departure, except to say that "the way it's been played in the press has been pretty accurate. I don't think anything is served by rehashing it at this stage of the game." He has no regrets about pushing to split the company: "I did the best I could. I don't have any second thoughts about the decisions I made." And he denies the rumors that his resignation was forced: "It was my decision, and the timing was mine." Forced or not, Miles now reigns as America's most eligible executive. Headhunters and food and tobacco industry insiders say Miles could be a candidate for a top position at H. J. Heinz, PepsiCo, Proctor & Gamble, and Pet Inc. Miles calls such talk "wild rumors," and says he won't start pursuing employment until September 1, and then feels "I think I ought to stick to something I know something about, which is consumer packaged goods and restaurants." Friends have suggested he put up some of this own capital--he owns, among other assets, 86,267 shares of Philip Morris stock, worth roughly $4.5 million--and join an investment firm. Miles hasn't entirely ruled that out. When asked about General Motors, which recently announced it is looking for a new marketing chief, Miles responded, "I don't want to talk about that. That is strictly a 2050910398 I