FDA's Menthol Probe Keeps Lorillard Outlook Hazy

Source from:  Dow Jones 06/26/2009

Barely a year into its debut as an independent company, menthol-cigarette maker Lorillard Inc. (LO) faces a round of questions on its flagship brand. Lorillard gets more than 90% of its sales from its Newport brand of menthol cigarettes, a category that will come under fresh scrutiny this year as the Food and Drug Administration assumes oversight of the tobacco industry. The new regulation is a twist in the tale for Lorillard, which has long been seen as a potential acquisition target. The menthol probe could have wider implications, including an impact on how potential buyers view … Enditem