Citigroup Doesn't Think Altria (MO) Will Buy Gallaher, Sees Price Increase

Citigroup analyst, Bonnie Herzog, comments on Altria Group (NYSE: MO): "We, along with our global tobacco counterparts, believe the likely acquirer of Gallaher (NYSE: GLH) is Japan Tobacco. We do not believe Philip Morris Int'l will be involved with a bid for Gallaher, as it does not match the acquisition criteria for PMI. We increasingly believe Philip Morris USA will announce a price increase very soon. Based on conversations with our trade contacts, we anticipate a $0.10 per pack increase by PM USA, and anticipate the other manufacturers will follow. Also, we have been told by our contacts that PM USA will be introducing a new line extension on Marlboro, Marlboro Smooth. The line extension will be a menthol brand that will be positioned to directly compete with Newport."

Altria (MO): Won't Comment On Whether Gallaher (GLH) Of Interest - DJ

Altria (NYSE: MO): Won't Comment On Whether Gallaher (NYSE: GLH) of Interest - Altria: Doesn't Comment on 'Purely Speculative Matters' - Dow Jones

Note: Yesterday Gallaher Group confirms that it has recently received an approach which may or may not lead to an offer. Link