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Philip Morris chief hopeful
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May 19, 1998: 8:35 p.m. ET
Won't rule out a return to bargaining table, but says latest proposals go too far
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NEW YORK (CNNfn) - Philip Morris Cos. Chairman Geoffrey Bible Tuesday left open the possibility that Big Tobacco may come back to the table in an attempt to work out a deal with states suing the industry.
However, he said the states are wasting their time if they believe tobacco companies will agree to a deal that could jeopardize their future.
Appearing Tuesday on "Moneyline With Lou Dobbs," Bible said the problem with all the previous attempts to settle litigation is that the states have made few attempts to involve the tobacco companies.
"It's the first time such actions have been taken without involving the industry. Right now, what we're focusing on is making sure the message gets out to the American people that this is a travesty," he said.
Bible said what began as an honest effort to avoid lengthy litigation "has been hijacked by politics and turned into a large grab for money."
"Independent polls have shown that 70 percent of the American people realized this wasn't about youth smoking, but about money," he said.
Bible said all attempts at a legislative solution have gone too far, although there are elements of all the versions that the industry has agreed to conceptually.
He said Philip Morris decided to settle with Minnesota, because officials believed the judge presiding over the case was biased. Even though he felt good about the company's chance of winning on appeal, appealing would have required the company to put up a substantial bond.
"I wasn't willing to bet the company," he said.
Philip Morris (MO) closed up 5/8 to 35-13/16 Tuesday, although it is trading close to its 52-week low of 34-3/4. (Click here to see a stock chart of Philip Morris)
Despite its problems with tobacco, Bible said Philip Morris' other businesses are doing well. Still, he would like to remove the "cloud of unpredictability" that tobacco has brought the company.
"We sought out a settlement to remove that. If we have to go back to the [legal] trenches, we will. I hope we will get back to something close to the original agreement."
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Philip Morris
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