[Intl-tobacco] France: BAT to 'assert legal rights' to be able to lower cigarette prices

[Robert Weissman]

BAT to 'assert legal rights' to be able to lower cigarette prices in
 France - AFX
 July 7, 2004

 PARIS - British American Tobacco PLC will "asset its legal rights" to be
 able to lower the price of cigarettes in France, in the face of opposition
 by the French government, according to head of investor relations for BAT
 France Olivier Blain.

 BAT wants to cut the price of its Pall Mall brand of cigarettes by 0.5 eur
 to 4.0 eur, a move which may be blocked by the French government. "The
 European regulations are clear: the price of cigarettes is not set by the
 state but by the producers," he said in an interview with French daily Les
 Echos.

 Blain argues that by cutting prices, the British cigarette manufacturer
 hopes to make it more attractive to buy cigarettes in France which are
 currently bought abroad, adding that the government stands to benefit from
 the additional income generated.