Analyst: Philip Morris Int. for Sale

Source from:  Monday, Aug 20, 2007 inrich.com 08/23/2007

VIRGINIA Analyst: Philip Morris International to be sold Altria Group Inc., the world's largest cigarette maker, will probably spin off its Philip Morris International unit Jan. 2, an A.G. Edwards & Sons Inc. analyst said yesterday in a report. The company's board will set the date at its Aug. 29 meeting as well as increase the dividend 9 percent, according to analyst Christopher Growe, who is based in St. Louis. Altria spun off Kraft Foods Inc., the world's second-largest food maker, in March. Altria lowered its quarterly dividend to 69 cents a share in July to reflect the Kraft spinoff. Previously, the payoff was 86 cents. The Kraft spinoff set the stage for a split of its U.S. tobacco business from the faster-growing international division. Philip Morris International, based in Lausanne, Switzerland, may be worth $52 a share, Growe estimated. Philip Morris USA is based in Henrico County. Timothy Kellogg, a spokesman at New York-based Altria, declined to comment. Aerial Machine to add to Patrick County plant STUART -- Aerial Machine and Tool Corp. plans to invest more than $600,000 to expand production capacity at its Patrick County plant, the governor's office announced yesterday. The company anticipates that the expansion will create up to 75 jobs. Aerial Machine makes sewn and machined products for the U.S. departments of Defense and Homeland Security, as well as for military contractors. THE NATION Diebold voting machine business fails to sell NORTH CANTON, Ohio -- Diebold Inc. said yesterday that it has failed to sell its voting technology business, which is used in elections across the country, amid criticism that its voting machines were not reliable. Instead, the company said, it will allow the unit to operate more independently, giving it a separate board of directors that includes independent members and perhaps a new management structure. Diebold also slashed its revenue outlook $120 million for the year for the unit because of delays by several states in buying voting equipment and said that will cut the company's earnings by 27 cents per share for the year. Judge lets Whole Foods go ahead with takeover WASHINGTON -- A federal judge yesterday gave a tentative green light to premium grocer Whole Foods Market Inc.'s plan to buy rival Wild Oats Markets Inc., rejecting arguments that the deal would stifle competition and lead to higher prices. The judge denied a request by the Federal Trade Commission to temporarily block the $565 million deal. The government had said it would appeal such a ruling. U.S. District Judge Paul L. Friedman's reasoning was filed in a 93-page document that was sealed because it contains corporate secrets. Whole Foods operates 190 stores, while Colorado-based Wild Oats has about 110. Both are relatively small players in the grocery business, but government lawyers said the combined company would essentially corner the industry market on premium and organic food. Lawmakers to consider plan for mortgage help WASHINGTON -- First-time homebuyers and people with poor credit would have greater access to federally insured mortgages under bipartisan legislation lawmakers are likely to take up this fall. Proponents in Congress say allowing the Federal Housing Administration to insure more mortgages would help the riskiest borrowers buy homes, or refinance unaffordable loans, at a time when funds are drying up amid a worsening credit crunch. When lawmakers reconvene after Labor Day they are expected to consider other ways to tackle the country's mortgage mess, such as banning abusive lending practices. But allowing FHA to back more loans could be a more direct way to shore up the housing market. Still, as mortgage defaults soar, skeptics in Congress question whether the government should take on the added risk. Enditem