Lorillard Starts CEO Succession Review

Source from:  Reuters 11/20/2009

Lorillard Inc (LO.N) had begun reviewing options for succession to CEO Martin Orlowsky, whose contract expires on Dec. 31, 2010, the third-largest U.S. cigarette maker said on Thursday. The board will weigh "all relevant options," the company said in a filing with the U.S. Securities and Exchange Commission. A spokeswoman for Lorillard declined to comment further on the succession options. Orlowsky, 67, has been president and chief executive since 1999 and became chairman in 2001. Lorillard was spun off from Loews Corp (L.N) in June 2008. Lorillard, which makes Newport, Kent, Maverick and True cigarettes, has occasionally been mentioned as a takeover target. Newport is the leader in the menthol cigarette market, a segment that has come under scrutiny by antismoking advocates. Menthol-flavored cigarettes are smoked by 75 percent of African-American smokers. Under tobacco legislation enacted this year, the Food and Drug Administration has been ordered to study the medical effects and marketing of menthol and its impact on blacks, Hispanics and other groups and report within 18 months. Lorillard shares were down 69 cents, or 0.87 percent, at $78.50 in midday New York Stock Exchange trading. Enditem