[Intl-tobacco] Philip Morris to Pay $220M for Argentine Tobacco Co.

[Robert Weissman]

Philip Morris to Pay $220M for Argentine Tobacco Co. (Update1)
by Helen Murphy
Source: Bloomberg News, Wednesday, 3/7/01

Buenos Aires, March 7 (Bloomberg) -- Philip Morris Cos., the world's
largest tobacco company, agreed to pay about 220 million pesos ($220
million) to increase its stake in Massalin Particulares SA, Argentina's
biggest cigarette maker.

FTR Holdings SA, a unit of the U.S. tobacco giant, will pay Germany's
Reemtsma Cigarettenfabriken GmbH a minimum of 87.5 centavos per share for
the 30.93 percent stake in Massalin Particulares, taking its interest in
the company to 94.67 percent.

After completing the deal, which is subject to certain conditions, FTR
plans to make a public offering for the remaining shares, Massalin
Particulares said in a statement.

The Buenos Aires Stock Exchange suspended trading in Massalin
Particulares, which makes Marlboro and Parliament cigarettes.

Argentina's biggest cigarette maker, earned 22.20 million pesos or 3
centavos a share, for the third quarter ended Sept. 30, compared with
earnings of 21.82 million pesos or 27 centavos a share, in the same period
a year earlier.

Philip Morris rose 2.1 percent to $49.84.