Money and Finance
This morning it was announced that Reynold's American (RAI) would buy methol cigarette maker Lorillard (LO) in a deal valued at $68.88 per share. If the acquisition is approved then LO shareholders will receive $50.50 in cash for each share of LO and 0.2909 shares of RAI at closing which is projected to take place in 2015. I was quite surprised to see that shares of both LO and RAI sold off pretty hard on the news with RAI losing 6.9% on the day and shares of LO losing about 10.5%. Pretty surprising considering that when talks of a potential merger/acquisition surfaced shares of LO had increased strongly on the rumor.
The deal could definitely face some headwinds due to regulatory and anti-trust concerns and could therefore fall through. If the merger is given the green light then the new company will be divesting some of the smaller brands to the British tobacco company Imperial Tobacco. What was really surprising to me is that one of the brands that will be sold off is the Blu e-cigarette that Lorillard currently owns. Blu is the leader in the e-cigarette market and I don't understand why you would want to get rid of that even if RAI is coming out with their own e-cig called Vuse. This is the most baffling piece of information about the merger, at least to me.
Read more »
- Leucadia National Corporation And Jefferies Group, Inc. To Merge
Leucadia National Corporation (LUK) and Jefferies Group, Inc. (JEF) today announced that the Boards of Directors of both companies have approved a definitive merger agreement under which Jefferies’ shareholders (other than Leucadia, which currently...
- Weekly Roundup - March 29, 2015
Quick update this week because I've been spending a lot of time with my wife and son at the hospital. Luke's been giving us a lot of trouble this week so I didn't have much opportunity to write. But I've got several ideas for some...
- Recent Option Transaction
Yesterday Lorillard (LO) traded 2% higher early in the day and that provided a good opportunity to close out the put option that I had sold. I love when I get opportunities to close out puts early for a solid profit. I had originally sold to open...
- Recent Buy - Exxon Mobil (xom)
Earlier this week I made another stock purchase and this time I was looking to replace the dividends in the last month of the quarter which I lost due to the Reynolds American Tobacco (RAI) buyout of Lorillard (LO). My precious Lorillard shares finally...
- What Would You Do? Rai Merger
Hi Everyone, I just logged into my retirement account and noticed that the RAI, LO merger has gone through. My 33.69 shares of LO turned into 9.89 shares of RAI and a deposit of $1,717.10 into my account. So what would you do? Would you immediately...
Money and Finance
Reynold's American (RAI) to buy Lorillard (LO)
This morning it was announced that Reynold's American (RAI) would buy methol cigarette maker Lorillard (LO) in a deal valued at $68.88 per share. If the acquisition is approved then LO shareholders will receive $50.50 in cash for each share of LO and 0.2909 shares of RAI at closing which is projected to take place in 2015. I was quite surprised to see that shares of both LO and RAI sold off pretty hard on the news with RAI losing 6.9% on the day and shares of LO losing about 10.5%. Pretty surprising considering that when talks of a potential merger/acquisition surfaced shares of LO had increased strongly on the rumor.
The deal could definitely face some headwinds due to regulatory and anti-trust concerns and could therefore fall through. If the merger is given the green light then the new company will be divesting some of the smaller brands to the British tobacco company Imperial Tobacco. What was really surprising to me is that one of the brands that will be sold off is the Blu e-cigarette that Lorillard currently owns. Blu is the leader in the e-cigarette market and I don't understand why you would want to get rid of that even if RAI is coming out with their own e-cig called Vuse. This is the most baffling piece of information about the merger, at least to me.
Read more »
- Leucadia National Corporation And Jefferies Group, Inc. To Merge
Leucadia National Corporation (LUK) and Jefferies Group, Inc. (JEF) today announced that the Boards of Directors of both companies have approved a definitive merger agreement under which Jefferies’ shareholders (other than Leucadia, which currently...
- Weekly Roundup - March 29, 2015
Quick update this week because I've been spending a lot of time with my wife and son at the hospital. Luke's been giving us a lot of trouble this week so I didn't have much opportunity to write. But I've got several ideas for some...
- Recent Option Transaction
Yesterday Lorillard (LO) traded 2% higher early in the day and that provided a good opportunity to close out the put option that I had sold. I love when I get opportunities to close out puts early for a solid profit. I had originally sold to open...
- Recent Buy - Exxon Mobil (xom)
Earlier this week I made another stock purchase and this time I was looking to replace the dividends in the last month of the quarter which I lost due to the Reynolds American Tobacco (RAI) buyout of Lorillard (LO). My precious Lorillard shares finally...
- What Would You Do? Rai Merger
Hi Everyone, I just logged into my retirement account and noticed that the RAI, LO merger has gone through. My 33.69 shares of LO turned into 9.89 shares of RAI and a deposit of $1,717.10 into my account. So what would you do? Would you immediately...