Richemont to Spin Off Stake in Tobacco Company

Source from:  nytimes.com Business Briefing Deals By REUTERS August 8, 2008 08/11/2008

The Swiss firm Richemont, maker of Cartier watches and Piaget jewelry, said it would spin off its stake in British American Tobacco under a revamp prompted by tax changes. Richemont, controlled by South Africa's billionaire Rupert family, will repackage its luxury business as a Swiss-listed company to be called Compagnie Financiere Richemont. Richemont will spin off a 30.1 percent stake in the tobacco company that it holds with Remgro of South Africa through a joint Luxembourg vehicle called R&R Holdings. Analysts said the move should increase trading in Richemont shares because it would remove some investors' constraints on tobacco investment. Enditem