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BACCY BARONS GET SWEET TEETH
(FORTUNE Magazine) – Kicking the tobacco habit can be tough, but not for Bennett LeBow, an investor who owns 83% of the Liggett Group (best known for its L&M cigarettes), and Edward Horrigan, former vice chairman of RJR Nabisco (Camel, Winston, Salem, and other brands). Like smokers trying to quit, both have turned to candy. LeBow, 52, is taking Liggett into new businesses, impelled by a long decline in his company's market share in cigarettes. Liggett will continue to roll out smokes, but the push will be into selling basketball and football cards and, yes, candy. Another big change for LeBow: Troubled Western Union, the telegraph-turned-financial-services company, which he controls, is selling most of its traditional business to AT&T. Price: $180 million. KKR's buyout of RJR left Horrigan with a $45.7 million golden parachute. He used some of the money to buy Candy USA, a small Atlanta confectioner with product tie-ins to Nintendo's videogames. His favorite: lemon gumdrops shaped like characters in the games. Says Horrigan, 60: ''Tobacco is getting tougher every day. The prospects are sweeter for candy.'' Postscript: Neither Horrigan nor LeBow smokes. |
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