Reynolds American In Talks To Acquire Lorillard - Quick Facts

(RTTNews) - Tobacco company Reynolds American Inc. (RAI) confirmed being in discussions to buy smaller rival Lorillard Inc. (LO). With the talks being consistent, Reynolds American's largest shareholder, British American Tobacco or BAT (BATS.L, BTI), is also participating in these discussions. If the transaction proceeds, BAT plans to support the transaction by subscribing for additional shares in RAI and would maintain its existing 42% equity stake in RAI.

Also, Imperial Tobacco Plc (IMT.L, ITYBY.PK) is involved in these negotiations as a possible purchaser of brands and other assets from Lorillard and RAI.

There is no assurance of signing any deal by any of the parties.