Loews Could Rise on Tobacco Spin-Off: Barron's Sun

Source from:  Dec 30, news.yahoo.com NEW YORK (Reuters) 01/02/2008

The recent decision by conglomerate Loews (LTR.N) to spin off its Lorillard tobacco unit could boost its stock by shrinking its total shares outstanding by 20 percent and eliminate much of the remaining tobacco-liability risk, Barron's said on Sunday. Loews trades for around $49, below the New York-based company's estimated net asset value of $64 a share, according to financial weekly's December 31 edition. It said Loews' discount to underlying asset value is excessive and highlighted Citigroup, which has a price target of $59 on the stock. Barron's said the benefits of the Lorillard spin-off may be under-appreciated by Wall Street. The $26 billion conglomerate, which owns hotels, oil and gas businesses as well as significant stakes in several publicly traded companies, is most often compared to Warren Buffet's Berkshire Hathaway (BRKa.N), according to Barron's. Enditem