Reynolds American Linked with Swisher

Source from:  tr.itsmyiq.com Dec 17, 2007 12/18/2007

There is a good chance that Reynolds American Inc (RAI) will try to buy the cigar manufacturer, Swisher International, according to Citigroup. The acquisition of Swisher, which is a private tobacco company and a market leader in machine-made cigars, would allow Reynolds to compete strongly in the cigar sector, where PM USA has recently acquired John Middleton. Citigroup said that the Swisher acquisition would provide RAI with a quick market share grab along with substantial cost savings and synergies with Conwood and Lane. Presumably, it would also hugely expand RAI's overseas interests. RAI has proved in the past that it is willing to pay for value added acquisitions and Citigroup estimates that it could pay as much as $4.2 billion to $4.8 billion for Swisher. Enditem