Altria Set to Spin off Overseas Tobacco

Source from:  By VINNEE TONG The Associated Press January 31, 2008 02/01/2008

Altria Group Inc. said Wednesday it would spin off its international tobacco business on March 28, freeing it to pursue cigarette sales more aggressively outside the United States by separating it from its American counterpart. The two tobacco units each make Marlboro, one of the world's top-selling cigarette brands. The details of the spinoff, tentatively approved by the Altria board last August, were announced as the company reported that fourth-quarter profit fell 26 percent from year-earlier results boosted by a gain related to a reorganization in 2006. Lausanne, Switzerland-based Philip Morris International has said that it would rank as the biggest nongovernmental cigarette maker in the world, behind the state-owned China National Tobacco. PMI makes Marlboro, L&M and Bond Street cigarettes, while Philip Morris USA makes the Marlboro, Virginia Slims, Parliament and Basic brands for U.S. consumers. The separation could shield Philip Morris International from U.S. legal and regulatory issues,