Zimbabwe: Probe Shakes BAT

Source from:  The Herald  12/10/2012

TOBACCO processor BAT Zimbabwe's shares fell 12 percent yesterday after police launched investigations into allegations of industrial espionage levelled against the firm. After trades yesterday, BAT lost US50c from US400c with the industrial index falling 0,27 percent or 0,41 points to 148,83.

The company's market capitalisation dropped from US$73 million on Wednesday to about US$69,5 million.
 
Police said this week investigations into BAT operations were underway and that the main focus of the probe was on alleged smuggling of cigarettes to South Africa.
 
They added that the investigation was also targeted at allegations that BAT was behind the hijackings of trucks carrying cigarettes from Zimbabwe to South Africa.
 
BAT has denied the allegations.
 
"BAT in response to recent allegations in the media, strongly denies any involvement in industrial espionage and any illegal activity that may be linked to other local tobacco manufacturers," said the company in a statement.
 
"As a company listed on the Zimbabwe Stock Exchange, in addition to our own internal governance on responsible market-place practices, we are confident that our business activities are ethical transparent and legitimate."
 
Meanwhile, trading on the stock market was generally positive with an improved total turnover of US$3,2 million. Enditem