Imperial Tobacco Set for ￡5bn Cash Call

Source from:  telegraph.co.uk By Ben Harrington 20/05/2008 05/20/2008

Imperial Tobacco is this week expected to launch one of Britain's biggest rights issues when it asks shareholders for up to ￡5bn. The tobacco giant, which owns the Lambert & Butler, Davidoff and JPS cigarette brands, has already hinted that it will raise up to ￡5bn by July 18 so that it can keep up its investment-grade credit rating following the €12.6bn (￡10m) purchase of Altadis. The acquisition of Altadis, which makes Gauloises and Gitanes cigarettes, was completed in January. Imperial Tobacco is also trying to buy out the remaining 40pc of Logista, a Spanish logistics company in which Altadis owned a 59.6pc stake. It could cost the tobacco company, which is run by chief executive Gareth Davis, around €910m. Imperial Tobacco's rights issue could be launched as early as tomorrow, according to informed sources. The move comes as some of Britain's largest banking companies - including Royal Bank of Scotland, HBOS and Bradford & Bingley - have gone to their shareholders to ask for extra fund