Reynolds American Forms Committee To Evaluate British American Tobacco's Offer

(RTTNews) - Reynolds American Inc. (RAI) said it has formed a Transaction Committee consisting of independent directors not designated by British American Tobacco p.l.c. (BATS.L, BTI) to evaluate non-binding proposal from BAT to acquire the shares of RAI common stock that BAT does not currently own.

The Transaction Committee has retained Weil, Gotshal & Manges LLP and Moore & Van Allen PLLC as legal counsel, and Goldman, Sachs & Co. as financial advisor to assist the Transaction Committee in its evaluation of BAT's proposal.

In addition, RAI has retained Jones Day as legal counsel and J.P. Morgan Securities LLC and Lazard as financial advisors. In light of the evaluation of BAT's proposal, RAI has cancelled its investor day scheduled for November 14, 2016.

Earlier in the month, British American Tobacco offered to buy the remaining 57.8 percent stake that it does not own in Reynolds American for $47 billion.