[Intl-tobacco] Japan Tobacco Mum On U.K. Gallaher Takeover Rumor

[robert weissman]

Japan Tobacco Mum On U.K. Gallaher Takeover Rumor

Thursday April 14, 5:57 AM EDT

TOKYO -(Dow Jones)- Japan Tobacco Inc. (2914.TO) declined to comment on
rumors Thursday that it had made a takeover bid for U.K. cigarette maker
Gallaher Group PLC (GLH).

"We know there have been rumors circulating in London," said a JT
spokeswoman. But "we won't comment on every market rumor."

The spokeswoman's remarks came after the U.K. cigarette maker's shares
closed 3% higher at 809.5p Wednesday. There have also been speculation that
Gallaher received and rejected the bid from JT over the weekend.

As the world's third-largest tobacco firm, JT is trying to make up for
sagging demand in Japan partly by increasing its overseas business. To that
end, it bought the international operations of RJR Nabisco in 1999. It is
stepping up efforts to boost overseas sales of its four global flagship
brands, including " Camel" and "Winston."

-By Hiroyuki Kachi, Dow Jones Newswires; 813-5255-2929; hiroyuki.kachi@
dowjones.com

-Edited by Shawn Schroter