US: Hearing in Reynolds Merger Lawsuit Cancelled

Source from:  Winston-Salem (NC) Journal 12/22/2014

A Delaware judge cancelled Friday a hearing in a lawsuit challenging the planned $27.4 billion merger of Reynolds American Inc. and Lorillard Inc. The complaint was filed in the Delaware Court of Chancery on a motion by plaintiffs who were seeking a preliminary injunction and a motion to expedite the case.

The manufacturers announced their deal July 15, essentially for Reynolds to gain top U.S. menthol brand Newport. Each company has set Jan. 28 as the date for asking their respective shareholders to approve Reynolds'offer.

The companies' management teams have expressed confidence that they will gain federal regulatory approval by June 30, 2015. They have acknowledged submitting additional information twice to the FTC.

Reynolds and British American Tobacco PLC have filed separate requests for the N.C. Business Court to dismiss a lawsuit trying to block Reynolds' offer.

The Beatrice Corwin Living Irrevocable Trust is suing Reynolds, its board - which includes top executive Susan Cameron - and BAT for breach of fiduciary duty. It says that BAT is protecting its 42 percent stake in Reynolds at the expense of public shareholders.

The defendants in the Corwin lawsuit agreed Thursday to allow the trust to file a single omnibus brief, not to exceed 14,000 words, in response to the defendants' dismissal filings. Enditem