Philip Morris International Stands Alone

Source from:  By JOHN REID BLACKWELL TIMES-DISPATCH STAFF WRITER Mar 29, 2008 03/31/2008

Philip Morris USA and its global sister company, Philip Morris International, have officially parted ways. Altria Group Inc., parent company of Henrico County-based tobacco giant Philip Morris USA, yesterday completed the spinoff of its Philip Morris International subsidiary into a separate, publicly traded company. Altria shareholders received one share of Philip Morris International stock for every share of Altria common stock outstanding at 5 p.m. The spinoff of the growing overseas business is aimed at increasing the value of Philip Morris International by unleashing it from legal and regulatory concerns in the United States and freeing it to grow in global markets. For the Richmond area, the spinoff means that Altria, a Fortune 500 company, moves its headquarters from New York City to join its Philip Morris USA subsidiary in Henrico County. Philip Morris International starts trading Monday under the "PM" ticker symbol. Altria will keep its "MO" ticker symbol. Shares of Altria rose 61 cents to $73.83 yesterday. Shares of Altria "when-issued," or trading as though Philip Morris International already was spun off, fell 70 cents to $22.22. Philip Morris International when-issued shares rose 38 cents to $51.06. With the spinoff, the companies also made previously announced leadership changes. Louis Camilleri, who was chief executive of Altria, is the new CEO of Philip Morris International. Philip Morris USA's chief executive officer, Michael E. Szymanczyk, becomes chairman and chief executive of Altria. Philip Morris International and Altria will maintain offices in New York, but most of the staff of Philip Morris International works in Lausanne, Switzerland. Only a small number of Altria employees are moving to Richmond. "The vast majority of people employed by Altria [in New York] are being separated by the company," said Altria spokeswoman Dawn Schneider. She said more than 400 worked for the company in New York and many had already left before yesterday. Others were packing boxes in their offices in the Park Avenue building, which the company has sold. The relocation means that Altria's annual shareholders meeting will be in Richmond this year for the first time since 2003. The meeting is scheduled for May 28 at the Greater Richmond Convention Center. Enditem