Financial News

Wednesday July 18, 08:51 AM
Altadis accepts 16.2 bln euro takeover by Imperial Tobacco

LONDON (AFP) - French-Spanish tobacco company Altadis (Madrid: ALT.MC - news) has accepted a takeover bid from Britain's Imperial Tobacco (LSE: IMT.L - news) valuing the company at 16.2 billion euros (22.4 billion dollars), Imperial Tobacco announced here Wednesday.

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It said the Altadis board of directors would recommend that shareholders approve the bid, worth 50 euros a share, in the absence of a higher, competing offer.

Altadis in March and April spurned two overtures from Imperial Tobacco of 45 and 47 euros.

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The offer that was accepted by Altadis management on Wednesday amounts to a 32-percent premium on Altadis's closing price on March 12, just ahead of a surge in the share value that followed the first offer.

Altadis closed at 48.10 euros in Madrid on Tuesday.

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The two groups hope to realise savings of about 300 million euros a year through the merger.

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