Imperial Tobacco Agrees 16.2 Bln Euro Bid for European Rival

Source from:  news.yahoo.com Jul 18, LONDON (AFP) 07/19/2007

French-Spanish tobacco company Altadis has accepted a takeover bid from Britain's Imperial Tobacco valuing the company at 16.2 billion euros (22.4 billion dollars), Imperial Tobacco announced Wednesday. 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. 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. The two groups hope to realise savings of about 300 million euros a year through the merger. Enditem