Bid lights up cigar stock
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December 16, 1998: 1:12 p.m. ET
French tobacco group Seita to buy Consolidated Cigar for $730M
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LONDON (CNNfn) - Consolidated Cigar, the largest U.S. cigar company, is being bought by Seita, the French cigarette maker, in a $730 million deal, it was announced Wednesday.
Seita will pay $17.85 a share in cash for each of Consolidated's shares. MacAndrews & Forbes Holdings, Consolidated's largest shareholder, has agreed to cash in its 65 percent stake.
Consolidated (CIG) owns cigar brands such as Dutch Treats and Antonio y Cleopatra. It also possesses the U.S. marketing rights to world-famous cigar names such as H. Upmann and Montecristo.
Seita, France's largest tobacco group, possesses archetypal French cigarette brands like Gauloises and Gitanes.
The deal will create the world's No.1 cigar company, producing 1.6 million cigars a year.
The deal was announced after the market close in Paris, where Seita shares tumbled 14 francs to 349 francs.
Consolidated shares were up 1-1/2 at 17-3/8 in mid-day trading Wednesday.
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