Tobo zu liebe - neuer MO -thread - 500 Beiträge pro Seite

[Livermore3]

hallo tobo,

MO ist eine der wenigen Aktien, die dem Abwärtstrend trotzen. Neues fällt mir jetzt nicht ein.

@tobo: neuen thread eröffnen ist einfach: Du gehts auf
Auslandswerteforum, dann neues Thema WPK eingeben
und kräftig in die Tasten hacken.

Ciao Liv

[omo]

Hallo Mo`ler!

ich möchte Euch mal was fragen: bei Yahoo.finance unter "Profile" für ein Unternehmen ist der Book-Value (per share-data) 6.78 $ für Mo, bei RJR Reynolds ist selbiger bei 83,31$ (!!), wohlgemerkt, nachdem er bei RJR von ca. 63 $ in den letzten Tagen auf diese 83,31 $ gestiegen ist. Zum Vergleich: Mo kosten ca. 49$, RJR dagegen 57$ . Ist das bei RJR ein Druckfehler, oder ist in den letzten Tagen was passiert?
Schauts Euch mal an, auch in punkto Bewertung von RJR!

Gruß an alle, Omo

[tobo]

Jury Finds for Brown & Williamson in Suit

Brown & Williamson Tobacco Corp. said on Wednesday a Texas jury found in its favor in a product-liability lawsuit brought by the family of a deceased smoker, the latest in a string of victories for the tobacco industry.

Brown & Williamson, the third-largest U.S. tobacco company and a unit of British American Tobacco Plc (BATS.L) (AMEX:BTI - news), said a Jefferson County district court jury sided with it in a lawsuit brought by Jeannie Grinnell and the estate of her husband, Wiley Grinnell Jr.

The case, first brought in 1995 against the American Tobacco Co., charged that Grinnell died as a result of smoking American Tobacco`s nonfiltered Pall Mall cigarettes from 1952 to 1985. Louisville, Ky.-based Brown & Williamson bought American Tobacco in 1995 and assumed any cases against it.

Brown & Williamson noted in a press release that the court victory is its sixth straight win since Jan. 1. Most recently, a Charleston, S.C., jury found for the company in a product liability suit in which the family of Samuel Little charged that smoking Brown & Williamson`s low-tar Carlton cigarettes caused his death.

``It`s nice to see another win for the industry,`` said Davenport & Co. analyst Ann Gurkin.

The plaintiffs had sought $10 million in compensatory damages and unspecified punitive damages, according to Salomon Smith Barney tobacco industry analyst Martin Feldman. Ten jurors voted in favor of the defendants and two voted in favor of the plaintiff, he said.

Brown & Williamson`s other cigarette brands include Kool, Lucky Strike, GPC, Capri and Misty.

The American depositary shares of British American Tobacco, the world`s No. 2 tobacco group behind Philip Morris Cos. Inc. (NYSE:MO - news), were up 43 cents at $16.89 in afternoon American Stock Exchange trading after climbing as high as $17.50 earlier in the session. The shares have a 52-week range of $7.75 to $17.85.

Shares of other tobacco companies, including Philip Morris and R.J. Reynolds Tobacco Holdings Inc. (NYSE:RJR - news), were also higher.

[tobo]

 Philip Morris kaufen

Die Aktienexperten von Salomon Smith Barney sprechen eine Kaufempfehlung
für die Aktie der Philip Morris (WKN 851777) aus.
Die Analysten von Salomon Smith Barney würden annehmen, das Philip Morris
im Jahr 2001 einen Gewinnanwachstum pro Aktie von 10,4% erreichen könne.
Das Unternehmen werde in den Jahren 2002 und 2003 einen Gewinnzuwachs
zwischen 14% und 16% pro Aktie verbuchen können. Das aktuelle stabile
Wachstum des Unternehmens kontrastiere stark mit dem Gewinndruck diverser
anderer S&P-Werte. Philip Morris` Gewichtung im S&P 500 sei nun
0,9%. Während sich dieser Wert seit März 2000 von 0,39% mehr als
verdoppelt habe, liege er doch immer noch weit unter dem Durchschnitt der
letzten sieben Jahre von 1,5% und dem Bereich von 1,1%-2%, der zwischen
1997 und 1999 erreicht worden sei.
Die Aktienexperten gaben ihrer Erwartung Ausdruck, die S&P-Gewichtung des
Unternehmens werde weiterhin steigen und damit auch das Portfolio-Risiko
für viele Investoren merklich anheben, das derzeit mit "0"
gewichtet sei. In den vergangenen Wochen, nachdem der NASDAQ gefallen war,
sei die Eigentümerverteilung von Philip Morris internationaler geworden.
Einige "Wachstums-Investoren" erwägten nunmehr einen Einstieg
in die Aktie. Dies könne den Kurs der Aktie auf die von den
Investmentexperten von Salomon Smith Barney gesetzte Zielvorgabe von $65
treiben.
Seit Januar 2000 sei der Kurs der Aktie um 109% gestiegen, liege jedoch
immer noch 12 unter dem Höchststand aus dem Frühjahr 1999. Die
Gewinnaussichten des Unternehmens seien jetzt jedoch besser als damals, da
die befürchteten Prozessrisiken abnähmen. Auch erwarte man, die neue
US-Regierung werde gegenüber den Tabak-Konzernen eine milde Politik
vertreten und das Thema von der täglichen Tagesordnung entfernen.
Für den August des Jahres prognostizierten die Börsenexperten eine
Anhebung der jährlichen Dividende pro Aktie von derzeit $2,12 auf $2,32
voraus. Bei einer Gewichtung von 1,5% im S&P 500 könne die Philip Morris
Aktie theoretisch in einem stagnierenden Markt einen Kurs von annähernd
$80 erreichen.

[Livermore3]

hallo MO´ler,

heute gibts mal wieder Dividende, zahlbar am 10.4.
Wie schnell doch so ein Quartal vergeht.

Wir stoßen an mit .......

Ciao Liv

[tobo]

Philip Morris Pushes for Regulation

By NANCY ZUCKERBROD Associated Press Writer

WASHINGTON (AP) - Philip Morris Inc. is trying to drum up congressional support for its ideas on giving the Food and Drug Administration authority to regulate tobacco.

Health advocates are wary of what nation`s largest cigarette manufacturer is up to.

``I just would say our approach as we have talked to members of Congress is that we understand there is some skepticism, but we are committed to trying to do this,`` Philip Morris Senior Vice President Steven Parrish said Wednesday.

Parrish announced a year ago that Philip Morris would support regulation by the FDA, something the Supreme Court ruled later would require new authorization from Congress.

Tommy Thompson, the Health and Human Services secretary, supports FDA regulation, but the Bush administration has not proposed legislation.

Health advocates also want regulation but are skeptical of Philip Morris` motives. Paul Billings, a lobbyist for the American Lung Association, called the company`s actions clever and troubling.

Billings believes Philip Morris` goal is to improve its image while doing all it can to see that rules are written to its liking. He described as inadequate a 14-page document, called ``FDA and Tobacco,`` that Philip Morris has been distributing on Capitol Hill.

When asked, most other tobacco companies say they support sensible FDA regulation, but Capitol Hill staffers say the other manufacturers are lobbying against it.

``Philip Morris is the only company at this point that supports this,`` said Daniel Groves, chief of staff to Rep. Ernie Fletcher, a Republican from a tobacco-growing district in Kentucky. The congressman, like most tobacco-state lawmakers, has refused to endorse FDA regulation.

Philip Morris is not lobbying only allies. The company also is targeting tobacco foes such as Sen. Dick Durbin, D-Ill., with whom company representatives met.

``It was a very unusual meeting,`` Durbin said. ``After spending all of my congressional career at war with the tobacco companies, I was literally sitting down with the enemy.

``What I told them was if they were going to work in good faith for FDA regulation, which would reduce sales to children and increase warnings to consumers, I would be willing to work with them.``

Philip Morris, which makes half the cigarettes sold in America, is a major player in Washington. In the last election, the company donated about $3.6 million to federal candidates and political parties.

Parrish said it ``makes sense from a business standpoint`` to press for regulation, because federal oversight could prevent the industry from having to abide by various state and local laws that could otherwise come about.

``FDA and Tobacco`` is more detailed than any previous document the company has distributed. It says FDA should regulate the manufacture of cigarettes and ingredients added to them.

But when it comes to nicotine and cancer-causing nitrosamines, which exist in tobacco, the document states merely that the company would support requiring the disclosure of information about those kinds of substances.

Health advocates argue FDA should be able to remove any element in cigarettes, even those not added by manufacturers. Parrish said the company would agree to that if it was technologically feasible, palatable to consumers and based on sound science.

Matthew Myers, president of the Campaign for Tobacco-Free Kids, criticized the document`s marketing provisions. It said, and Parish confirmed, the company supports codifying the restrictions agreed to by the states and the companies in their 1998 settlement of claims for illnesses caused by tobacco.

That includes a ban on ads targeting minors, but Myers said it is difficult to prove companies are aiming at children. He wants the government to have the power to prohibit ads deemed likely to appeal to children.

Philip Morris also says the government should define ``reduced risk products`` and establish advertising guidelines for them.

Analyst David Adelman, who follows the industry for Morgan Stanley Dean Witter, said Philip Morris is close to developing a cigarette with low carcinogen levels. Parrish acknowledged such a product is in the works.

Adelman said the company would not be allowed to market the cigarette as a healthier product under current law, and he called that a major reason why Philip Morris wants FDA regulation. ``They genuinely need FDA`s blessing to make a health-based claim,`` Adelman said.

[tobo]

Analysts See Tobacco Companies Posting 1st-Quarter Earnings Increases



NEW YORK -- Major tobacco companies are expected to report higher first-
quarter profits, despite a drop in U.S. cigarette shipments.

Total industry volume fell about 3% to 4% during the three months ended March
31, analysts said. Cigarette makers are still feeling the pinch from late last
year when wholesalers built up their inventories in advance of a price increase.
Although industry shipments are down, they have improved since 1999, a
particularly weak year when volume was off 9%.

Overall, analysts conclude that industry fundamentals are stable. Shipment
trends are improving, while litigation eases. All this leads analysts to expect
higher valuations from the group this year. Tobacco companies begin reporting
first-quarter earnings this week.

"Broadly, the business is improving," said David Adelman, an analyst at Morgan
Stanley Dean Witter & Co.

Philip Morris Cos. (MO), the nation`s largest tobacco company, is expected to
report that net income rose to $2.1 billion, or 95 cents a share, from $2.07
billion, or 89 cents, in the year-earlier period, according to Sanford C.
Bernstein & Co. analyst Bill Pecoriello. Key contributors were the company`s
global food and tobacco operations. Beer profits were down.

Philip Morris` U.S. cigarette shipments fell about 3% in the latest quarter,
but domestic tobacco operating profits, with the help of higher cigarette
prices, increased about 5% to $1.17 billion, according to Mr. Pecoriello.

Meanwhile, the New York-based company saw international tobacco shipments rise
between 4% and 6% and operating income increase more than 8% to $1.61 billion.
This marks the second consecutive quarter of strong overseas volume growth.
Recovering economies continued to help matters, as did the easing impact that
the elimination of the duty-free trade had on the company and the industry more
than a year ago.

Philip Morris is scheduled to report earnings Tuesday.

R.J. Reynolds Tobacco Holding Inc., the nation`s second-largest cigarette
manufacturer, is expected to report net income of $95 million, or 96 cents,
compared to $80 million, or 77 cents, a year earlier, according to Mr. Adelman.
Lower interest expense continued to help the bottom line.

The Winston-Salem, N.C., company saw unit volume decrease 4% because of higher
prices, according to Goldman Sachs & Co. analyst Marc Cohen. Reynolds continues
to battle several fundamental issues, including its reliance on the weakening
discount segment and that its brands continue to attract mostly older smokers.

Reynolds (RJR) is scheduled to report first-quarter results Thursday.

Meanwhile, UST Inc., based in Greenwich, Conn., is expected to report earnings
of $102.5 million, or 63 cents a share, compared to $102 million, or 62 cents a
share, a year earlier, Mr. Adelman said. Analysts estimate unit volume dropped
anywhere from 1% to 3% in the quarter. A plan to drive volume by increasing the
size of UST`s (UST) Skoal longcut premium product didn`t pan out as the company
had planned.

Loews Corp. (LTR), which owns Lorillard Tobacco Co., is expected to earn $1.36
a share, according to Mr. Cohen. Analysts expect Loews to post earnings of about
$1.47 a share, according to Thomson Financial/First Call. In the year-earlier
period, the company reported per-share earnings of $1.22 a share, adjusted for a
2-for-1 stock split. The biggest contributor to earnings is the company`s CNA
insurance business. Lorillard`s operating profits are expected to have increased
more than 3% despite a 5.5% decline in volume, Mr. Cohen said.

[tobo]

News Calendar

Major scheduled events for the week beginning April 22. Please note that many events, especially court appearances, are subject to change at the last minute.

The following economic reports will be issued in Washington (all times EDT):

MONDAY: Treasury bill auction, 2 p.m.

WEDNESDAY: Commerce Department reports on durable goods orders for March and on new home sales for March, 8:30 a.m.; National Association of Realtors reports on existing home sales for March, 10 a.m.

THURSDAY: Labor Department reports on weekly jobless claims and on employment cost index for first quarter, 8:30 a.m.

FRIDAY: Commerce Department reports on gross domestic product, first quarter, advance, 8:30 a.m.

SUNDAY, April 22:

Las Vegas - National Association of Broadcasters meets. Through April 26.

MONDAY, April 23:

Washington - Senate returns from recess.

Washington - Supreme Court issues orders.

New York - Sen. Hillary Rodham Clinton keynotes David N. Dinkins Leadership and Public Policy Forum.

TUESDAY, April 24:

Washington - President Bush meets with Lebanese Prime Minister Rafik Hariri.

Washington - House returns from recess.

Washington - Supreme Court hears arguments.

Washington - Senate Commerce, Science and Transportation subcommittee hearing on safety of car booster seats.

Washington - Senate Finance Committee hearing on medicare and prescription drugs.

New York - Conference Board releases consumer confidence survey.

Newport News, Va. - Virginia Marine Resources Commission meeting; may be vote on proposals to protect the Chesapeake Bay blue crab.

WEDNESDAY, April 25:

Washington - Supreme Court hears arguments.

Washington - Senate Judiciary Committee hearing on the legal issues involving religious-based organizations.

Little Rock, Ark. - President Bush attends fund-raiser for Sen. Tim Hutchinson.

THURSDAY, April 26:

Washington - Spring meetings of the World Bank and International Monetary Fund. Through April 30.

Washington - Senate Energy and Natural Resources Committee hearing on national energy policy.

Washington - Senate Finance Committee hearing on tax code simplification.

Richmond, Va. - Annual shareholders meeting of Philip Morris Inc.

[tobo]

No Money in Bush Budget for Tobacco

WASHINGTON (AP) - The Bush administration has not asked Congress
for money in its new budget to pay for a massive lawsuit against
big tobacco companies, prompting concerns that the Justice
Department may not be able to continue the suit.
The administration has requested $1.8 million to pay salaries
and staff costs for the tobacco litigation team in the department`s
civil division, Justice officials said. But no money has been
sought to pay for legal work, such as gathering and analyzing
millions of documents that tobacco companies have asked to see.
The litigation team has estimated that it needs more than $57
million this year to keep working on the case, according to The
Washington Post, which cited a March 12 memo sent by tobacco
litigation lawyers to Attorney General John Ashcroft.
The litigation team said that without more money, it can`t keep
pursuing the case. David Ogden, assistant attorney general and head
of the department`s civil division, had made the same argument last
fall.
The Justice Department suit, filed in September 1999, accused
big tobacco companies of putting profits before health by
concealing data showing that nicotine is addictive and that smoking
causes disease. The government seeks to recover hundreds of
millions of dollars in medical costs borne by federal health
programs to pay for smoking-related illness.
Tobacco companies have denied the charges. Republicans and
members of Congress from tobacco states oppose the litigation and
have tried to block the Justice Department from getting money to
continue the suit.
Congress redirected $11 million from other federal agencies to
pay for the litigation and can do the same this year, Susan Dryden,
Justice Department spokeswoman, said Wednesday. She would not
confirm whether the department needs another $57 million.
She said Ashcroft has not yet reviewed the memo. No decision has
been made on whether to continue the lawsuit, she added. During his
confirmation hearings Ashcroft said he would evaluate the
litigation, which he opposed when he was in the Senate. President
Bush said during the presidential campaign, ``We`ve had enough
lawsuits.``
Justice Department officials said the lack of a specific request
for litigation money doesn`t indicate the agency`s position on the
lawsuit, pointing out that there was no money in last year`s budget
for the suit beyond $1.8 million for staff costs and that funding
level has been continued in the new budget request.
``This budget does not take a position on the funding of tobacco`` litigation, Paul McNulty, acting principal associate deputy attorney general, said at a budget briefing last week.
Dryden said the decision about whether to continue the suit was
a policy matter, not a budget issue. But money is crucial to the
government`s ability to process millions of pages of tobacco
industry documents, some dating back to 1954, and a huge number of
government documents the industry wants to see. A trial was to
begin in January 2003.

[tobo]

Philip Morris Chair Backs Regulation
By LARRY O`DELL
Associated Press Writer
RICHMOND, Va. (AP) - The chairman of Philip Morris Cos. Inc.
said Thursday that federal regulation of tobacco would help the
company develop a ``reduced risk`` cigarette.
``We believe it is our responsibility to aggressively pursue developing reduced risk products,`` Geoffrey C. Bible said at the
annual shareholders meeting.
Philip Morris, which is developing a cigarette with lower levels
of some cancer-causing substances, has been lobbying Congress for
federal regulation.
The company wants the government to define ``reduced risk`` products and establish advertising guidelines for them, Bible said.
Thursday`s speech was the first time Bible has told shareholders
why the company is advocating government regulation. He said the
company should have a role in developing the regulations.
The company announced a year ago that it would support regulation by the federal Food and Drug Administration, and has
been lobbying in Washington for it.
Health advocates also want regulation but are skeptical of Philip Morris` motives, saying it is taking the offensive to assure
the rules are written to its liking.
Philip Morris is the nation`s biggest cigarette maker with brands including Marlboro, Virginia Slims and Merit. It accounts
for half of the cigarettes sold in the United States.
On Wednesday, it boosted wholesale cigarette prices by 14 cents
a pack for the second time in just over four months. That could
mean even higher prices for smokers at the cash register.
Philip Morris` food business trails only Nestle SA in that industry. Its holdings include Kraft, Oscar Mayer, Miller Brewing
Co. and Nabisco, which it bought last year for $14.9 billion. Among
the products sold by the combined food companies are Kool-Aid,
Jell-O, Post cereals, Altoids mints, LifeSavers, Toblerone
chocolate and Tombstone pizza.
The company plans to sell a minority stake in its food holdings
later this year in an initial public stock offering.
Outside the sprawling cigarette factory where shareholders met,
anti-tobacco activists promoted a boycott of Kraft Foods begun by
the corporate watchdog group INFACT in 1994.
``We`re here to demand that Philip Morris stop using ads that appeal to kids,`` said Kim Foltz of Boston, an INFACT member.
``Specifically, we want them to drop the Marlboro Man.``
Demonstrators from People for the Ethical Treatment of Animals
protested smoking research conducted on animals.
``People have a choice when it comes to smoking. These animals
don`t,`` said Andrew Butler of Norfolk, PETA`s campaigns
coordinator.
Several dozen Philip Morris retirees also demonstrated in support of a cost-of-living increase in their pensions.
In trading Thursday on the New York Stock Exchange, Philip Morris was up 70 cents at $50 a share.

[tobo]

Tobacco Workers Urged to Quit Jobs

ORLANDO, Fla. (AP) - Quit your job!
That`s the message the state of Florida is sending in full-page
newspaper ads directed at tobacco company employees.
The ad - part of a state campaign to reduce teen-age smoking -
was published Thursday in Charlotte, N.C., Louisville, Ky., New
York and Richmond, Va., where Philip Morris Inc., R.J. Reynolds
Tobacco Co. and Brown & Williamson Tobacco Corp. have corporate
offices or nearby plants.
The campaign is funded by the state`s $11.3 billion settlement
with cigarette makers and is administered by the Health Department.
The ads, costing $129,617, incorporated Take Our Daughters to
Work Day, which was Thursday.
``On Take Your Daughter to Work Day, Would You?`` the ads began.
``Today 3,000 young people will start smoking. 1,200 people will
die from tobacco. And someone, somewhere will decide they`ve had
enough of working for the tobacco industry. We`d like to make sure
it`s a decision that doesn`t go unnoticed.
``So if you`re out there, please call 1(866)929-9222, and let your daughter see you for what you really are. A hero.``
The ads show an image of a worker on a cigarette assembly line.
The ads were placed in Charlotte`s Creative Loafing weekly, The
Courier-Journal in Louisivlle, the national edition of The New York
Times and the Richmond Times-Dispatch.
Philip Morris supports Florida`s campaign to reduce youth smoking, but ``this ad doesn`t appear to be consistent with those
goals,`` said spokesman Tom Ryan.
``Spending Florida`s settlement funds and tax dollars to attract
employees of the tobacco industry isn`t appropriate or necessary,``
Ryan said. ``We`re very proud of our employees and the
contributions they make not only to our business but to the
community as well.``
The state hopes to run advertisements featuring current or former tobacco company employees who respond to the appeal to quit,
said Frank Penela, Health Department communications director.
Since Florida reached its settlement with the cigarette makers
in 1997, it has run a series of funny TV commercials poking fun at
tobacco companies. The commercials are credited with helping to
reduce teen smoking in Florida.
``Our hope is that they do grow a conscience and decide that that is the right thing to do,`` Penela said.
By mid-morning Thursday, 13 people had left messages at the
toll-free number, including two current or former tobacco company
employees who left phone numbers and an irate tobacco company
employee, said Neydy Gomez, an executive at Crispin, Porter and
Bogusky, the agency that created the ad.
Brown & Williamson spokesman Mark Smith said no one he knows at
the company`s Louisville offices was talking about the ad.
``You would think an advertisement is supposed to get somebody
to do something. If that`s the case, than the ad fired a blank,``
Smith said. ``I can tell you right now, I love my job and I respect
my company and I think everyone here feels very similar.``
R.J. Reynolds had no comment.

[tobo]

Philip Morris Backs Tobacco Rules
.
.

RICHMOND, Va. (AP) - Federal and international tobacco regulations would help Philip Morris Inc. develop a ``reduced risk`` cigarette, the company`s chairman told shareholders Thursday.
Geoffrey C. Bible also said Philip Morris, the world`s largest cigarette maker, should have a say in developing the regulations.
``We look forward to taking part in the process of creating a new and rational regulatory environment for the manufacture, sale
and marketing of cigarettes - one that addresses health issues
while respecting the principle of freedom of choice among adults,``
Bible said at the annual shareholders meeting.
``Regulation also would provide guidance and support for our
efforts to produce reduced risk tobacco products,`` he said. ``It
would help us to define what is meant by ``reduced risk` and how
such products would be produced and marketed.``
Philip Morris, which is developing a cigarette with lower levels
of some cancer-causing substances, has been lobbying Congress for
federal regulation. Bible said company officials also support
global regulation through a World Health Organization treaty, which
the 191 member governments will discuss Monday.
Thursday`s speech was the first time Bible has told shareholders
why the company is advocating government regulation. Tobacco
industry critics are skeptical of Philip Morris` motives.
``The regulation he`s talking about is regulation written by his company`s lawyers,`` said Edward L. Sweda Jr., senior attorney for
the Tobacco Control Resource Center at Northeastern University in
Boston. ``We`re leery of that based on a track record of a
half-century of corporate misbehavior.``
A board member of the corporate watchdog organization INFACT
told Bible during a shareholders` question-and-answer session that
Philip Morris should not have a voice in writing regulations.
``That`s like having the Ku Klux Klan help develop civil rights laws,`` said the San Diego man, who goes only by the name Akili.
Bible said it would be ``very un-American`` to suggest tobacco
companies should not be involved.
Philip Morris accounts for half of the cigarettes sold in the United States with brands including Marlboro, Virginia Slims and
Merit. On Wednesday, it boosted wholesale prices by 14 cents a pack
for the second time in just over four months. That could mean even
higher prices for smokers at the cash register.
Philip Morris` food business trails only Nestle SA in that industry. Its holdings include Kraft, Oscar Mayer, Miller Brewing
Co. and Nabisco, which it bought last year for $14.9 billion. Among
the products sold by the combined food companies are Kool-Aid,
Jell-O, Post cereals, Altoids mints, LifeSavers, Toblerone
chocolate and Tombstone pizza.
The company plans to sell a minority stake in its food holdings
later this year in an initial public stock offering. Bible told
shareholders that Securities and Exchange Commission rules
prohibited him from discussing the offering.
Shareholders overwhelmingly rejected proposals to warn people
about the hazards of secondhand smoke, ensure that tobacco ads do
not appeal to youths, phase out genetically engineered food, stop
funding smoking-related research using animals, better inform
consumers about smoking risks, and adopt a global human rights
policy.
The company`s board recommended defeat of the proposals.
Outside the sprawling cigarette factory where shareholders met,
anti-tobacco activists promoted a boycott of Kraft Foods begun by
INFACT in 1994 and intensified in 1999 when Philip Morris began an
ad campaign promoting its charitable works.
``We`re here to demand that Philip Morris stop using ads that appeal to kids,`` said Kim Foltz of Boston, an INFACT member.
``Specifically, we want them to drop the Marlboro Man.``
Critics say the rugged cowboy mascot for Marlboro cigarettes is
designed to appeal to children. Bible said all the company`s
marketing is aimed at adults, and Philip Morris has no intention of
retiring the Marlboro Man.
In trading Thursday on the New York Stock Exchange, Philip Morris was up 20 cents to close at $50.90 a share.

[tobo]

Chairman Bible faces teens at Philip Morris meeting

By Jessica Wohl

RICHMOND, Va., April 26 (Reuters) - Philip Morris Cos. Inc.
(NYSE:MO) Chairman and Chief Executive Geoffrey Bible, a
battle-scarred veteran of tobacco wars with activists and
government lawyers, found himself answering to a 13-year-old girl
at the company`s annual meeting Thursday.

"My friends and I haven`t fallen for the Marlboro man, but we`re
concerned about the spread of tobacco marketing to kids in other
countries," Kaelyn Mahony, from Minneapolis, said.

Mahony was referring to the much-maligned cowboy Philip Morris,
the world`s largest cigarette maker, has used for years to advertise
the company`s top brand.

Mahony, who joined her anti-smoking activist mother at the meeting
because Thursday was Take-Your-Daughter-to-Work Day, called
for Bible and the company to "take the first step toward reversing
the global tobacco epidemic by getting rid of the Marlboro Man."

As in years past, Bible defended the company`s position of giving
adults the choice to smoke, and repeatedly said Philip Morris does
not encourage underage smoking.

"We do not want kids to smoke," Bible said after Mahony`s remarks.

"We are doing everything in our power" to tell children that smoking
is an adult choice, he added. Those actions include an anti-smoking
advertisement that debuted during the Super Bowl.

Another teenage girl, from Idaho, told Bible it was his and the
company`s responsibility to get kids not to smoke.

While the settlement of government-sponsored class action lawsuits
prohibits the company from marketing toward children in the United
States in any way, activists argue that the company`s marketing
practices still encourage children overseas to start smoking. Philip
Morris has repeatedly denied this allegation.

The annual meeting was a tame affair compared to past years when
throngs of protestors picketed, hovered overhead in airplanes with
anti company banners and peppered Bible with questions and
lectures.

"There are a lot less protestors, which is encouraging," Bonnie
Herzog, tobacco analyst at Credit Suisse First Boston, said.

Shares of Philip Morris, which also owns Miller Brewing Co., have
jumped from a low of $21.06 in the past 12 months to trade in the
$50-range. They rose 20 cents to $50.04 on the New York Stock
Exchange on Thursday, hovering near a 52-week high of $52.04.

"We stockholders just love you Mr. Bible!" a woman shareholder
cheered. Her only complaint that she did not buy even more shares
as they climbed in value was met with laughter and applause from
the crowd.

On financial matters, Bible said the company still expects underlying
earnings per share, which includes the impact of the company`s
December acquisition of Nabisco, to grow 9 percent to 11 percent
this year. He also said Philip Morris still expects Nabisco to add to
diluted earnings per share in 2002.

He said, "2000 was a very good year for Philip Morris. We entered
2001 with momentum, and we have every reason to expect solid
results again this year."

During the meeting, a proposal to phase out use of genetically
engineered food was defeated just months after Kraft had to recall
2.5 million boxes of taco shells which were found to contain StarLink
corn. StarLink has not been approved for consumption by humans.

All six of the proposals presented by shareholders were defeated
by at least 92.2 percent of those voting, according to a preliminary
count. The proposals dealt with a variety of issues ranging from
environmental tobacco smoke to global human rights standards.

[tobo]

Schaeffer`s Investment Research, Inc MO

Bullish Philip Morris (MO) 49.85) Bearish Tellabs (TLAB) 32.29) After
yesterday`s close, MO reported that the company will raise
wholesale prices by $7 per 1,000 cigarettes. For consumers, this
translates into approximately a 14 cent-per-pack increase. RJ
Reynolds (RJR) 57.68) followed MO`s lead by also raising their
wholesale prices. We look for that news to be the positive impetus
that will carry the shares to our targeted level of 51.70. With the
shares overcoming the May 50 call in Wednesday`s trading, we
believe that MO has further room to run. The May 50 call is home to
16,000 contracts, which could provide the added boost the shares
need to reach our target, as delta hedging may spur "extra buying" in
the shares. With MO sporting a put/call ratio above 1.0, there is still
more potential for skeptical investors to start moving money in MO`s
direction, as some of the skepticism wears off with the equity
approaching its all-time high. [phone]
www.SchaeffersResearch.com

[tobo]

Egypt Eastern Tobacco up ahead of stake sale
CAIRO, April 30 (Reuters) - Shares in Egypt`s Eastern Tobacco Company jumped on Monday on hopes for further privatisation of the firm, traders said.
The stock was up 2.31 pounds, or 4.9 percent, at 49.38 pounds by 1125 GMT. "It`s a reaction to the mention of the government stake sale on a television programme last night," one
analyst at a Cairo-based brokerage firm said.
Egypt wants to sell a tranche of up to 15 percent in tobacco group Eastern this year but has received no offers from potential buyers so far, Public Enterprise Minister Mokhtar Khattab told Reuters on Saturday.
He said that an independent study had valued Eastern at about 115-140 pounds ($30-36) per share, but said the price would depend on the size of the stake, issues such as management
rights and the market situation.
An official close to the privatisation process said in December that tobacco giants Philip Morris (NYSE:MO) and British
American Tobacco (ISEL:BATS) had voiced interest in becoming
strategic investors at Eastern, but had not made a formal bid.
($1=3.88 Egyptian pounds)

[tobo]

Reuters, 05/2/2001 12:08
BLOCK TRADE - Philip Morris Cos. Inc. (NYSE:MO)
360,000 at $51.80, off $0.30, crossed by Salomon Smith Barney.

[tobo]

Philip Morris Companies (MO)
                      



BAT(BATS.L)not interested in Egypt Eastern Tobacco

LONDON, May 2 - British American Tobacco Plc, the
world`s second largest tobacco company, said on Wednesday it was
not interested in taking a stake in Egypt`s Eastern Tobacco
Company (EAST.CA).
Asked if BAT wanted to buy a stake in Eastern Tobacco,
Managing Director Ulrich Herter said: "No. We choose to go this
way (using Eastern Tobacco`s factory to manufacture Kent)."
"It doesn`t look like we can take management control, and we
are not interested in a long-term minority control," he said at
a first quarter results briefing.
Herter said BAT has agreed with Eastern Tobacco to
manufacture Kent in its factory and sales and distribution of
the brand starts at the beginning of this month.
Egypt wants to privatise Eastern by selling a tranche of up
to 15 percent in the tobacco group this year but has received no
offers from potential buyers so far, Public Enterprise Minister
Mokhtar Khattab told Reuters on last week.
He said that an independent study had valued Eastern at
about 115-140 Egyptian pounds ($30-36) per share, but said the
price would depend on the size of the stake, issues such as
management rights and the market situation.
An official close to the privatisation process said in
December that tobacco giants Philip Morris (MO.N) and BAT had
voiced interest in becoming strategic investors at Eastern, but
had not made a formal bid.

[tobo]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[tobo]

STOCKWATCH Philip Morris higher after filing amended Kraft IPO registration
NEW YORK (AFX) - Shares of Philip Morris were higher after the company`s
wholly-owned food and beverage subsidiary Kraft Foods Inc filed with the
Securities and Exchange Commission an amended registration statement relating to
the initial public offering of 280,000,000 shares of its Class A common stock
and an additional 28,000,000 shares subject to the underwriters` over-allotment
option, dealers said.
At 10.52 am, Philip Morris was up 87 cents or 1.7 pct at 51.88, RJ Reynolds
was up 53 cents, or 0.9 pct at 59.78, US tobacco was higher was up 14 cents, or
0.5 pct at 29.41.
The DJIA was down 114.9 points at 10,761.71, while the Nasdaq was down 46.65
points at 2173.95.
It is currently estimated that the initial public offering price will be
between 26-31 usd per share, according to the statement.
Goldman Sachs analyst Marc Cohen said in a note that though the numbers are
valued slightly higher than believed, but it does not change his valuation for
Philip Morris.
"This is based upon our view that 14 pct earnings growth should re-emerge
for this company and that the `tobacco` taint is likely to shrink as the threat
off aggregated lawsuits dissipates," Cohen said.
Analyst added that Kraft`s profit-growth results consistently exceed those
of it s peers in the food industry.
However, the company also continues to face legal trouble in tobacco suits
and exposure to the weak euro, Cohen said.
Philip Morris said it expects the offering to be completed by the end of the
second quarter of 2001.

[tobo]

Philip Morris Cos.` (NYSE:MO) Kraft
Foods unit has the prestige and financial muscle to become a
benchmark public company amid slow-growth food stocks, but some
in the investment community caution that its latest IPO pricing could
be a bit high.

Philip Morris on Wednesday boosted its price range for 280 million
shares of Kraft (NYSE:KFT) to $26 to $31 each, hoping for much as
$8.7 billion from an earlier cap of $5 billion. The high end of the range
may be questionable, analysts said, given the market for IPOs and
recent weakness among food stocks. The deal is expected to price
by the end of the second quarter.

"The IPO range is about one multiple higher than we are," said
Goldman Sachs analyst Romitha Mally, who believes a fair valuation
for Kraft would be $25 a share. A $25 valuation would price Kraft at
9 times its projected earnings, before interest, taxes, depreciation
and amortization (EBITDA), and would gives its North American
business a 15 percent premium to its peers in the food industry and
its international business a 15 percent discount to its peers, she
said.

Those peers include U.S. food giants General Mills Inc. (NYSE:GIS),
Sara Lee Corp. (NYSE:SLE) and ConAgra Foods Inc. (NYSE:CAG),
as well as international heavyweights Nestle SA (ZSE:NESZ.N) and
Unilever Plc (ISEL:ULVR), analysts said.

`WHAT THE MARKET WILL BEAR`

"They`re clearly trying to get what they can, what the market will
bear," said Yacktman Asset Management`s Donald Yacktman, who
counts Philip Morris as his largest holding. Lower interest rates, he
said, are helping Philip Morris to justify a higher price-to-earnings
multiple for Kraft.

Philip Morris, which is looking to use the proceeds from its offering to
pay down debt from its $19.2 billion acquisition of Nabisco, can
justify some premium over its competitors stock prices due to its
massive size and scale, and its consistent track record. With a
stable of products that include Kraft cheeses, Post cereals, Maxwell
House coffee, DiGiorno pizza and StoveTop stuffing, the Northfield,
Illinois-based company had 2000 sales of $26.5 billion.

Kraft Foods North America`s operating income climbed 7.8 percent to
$3.6 billion, while its international operations rose 5.4 percent to $1.1
billion.

"It certainly deserves to trade at a premium to the U.S. food group,"
Yacktman said.

GAINING MERIT FROM ITS SIZE AND PRESENCE

On average, the industry is expected to post per-share earnings
growth of about 11 percent next year, said Merrill Lynch analyst
Leonard Teitelbaum. "Kraft is going to be accorded certain merits
due to its size and presence," Teitelbaum said. "Whether it maintains
that is going to be completely dependent on how well the company
delivers."

Kraft has indicated to analysts that it expects cash
earning-per-share growth of 14 percent to 16 percent over the next
three years, Mally said.

"The pricing initially sounds rich," said Ronald Thomas, a vice
president with Liberty/Colonial Funds. "I don`t see cash earnings
beyond 11 or 12 percent in the next five years as being possible,
based on what I know about the food industry. We`re still talking
about cheese and coffee and some slower-moving categories."

He added that he too was expecting to pay some premium on the
stock, because Kraft is farther along in its integration of Nabisco
than some large-scale rivals, citing General Mills` purchase of
Pillsbury as an example.

Still, there are some risks attached to Kraft, analysts said. It will still
be majority-controlled by Philip Morris, which carries the legacy of
tobacco litigation. In addition, the company`s international business
lags that of its larger overseas competitors.

"We don`t see any reason why their IPO can`t get done," said Tim
Ghriskey, head of value investing for Dreyfus Corp. "We`re hoping
it`s at the midpoint of the range or lower." chicago.equities.
[e-mail]))

[tobo]

Kraft Foods names Dollive as world food unit CFO
NORTHFIELD, Ill., May 4 (Reuters) - Philip Morris Cos` (NYSE:MO) Kraft Foods on Friday said it has named James Dollive as senior vice president and chief financial officer for its worldwide food business.
Kraft said Dollive had been senior vice president of finance and information systems for Kraft Foods North America. The food and beverage company also said it had appointed Ralph Nicoletti as senior vice president of finance for Kraft Foods North America.
Copyright 2001, Reuters News Service

[tobo]

Philip Morris Details IPO
NEW YORK, May 03, 2001 (AP Online via COMTEX) -- Philip Morris Cos. Inc.indicated it could raise as much as $9.5 billion from its planned sale of stockin its Kraft Foods division, making it one of the biggest initial publicofferings in the United States.
The IPO could help the company pay down some of the $11 billion in debt itacquired when it bought Kraft last year.
Kraft Foods is the nation`s biggest food company, including Oscar Mayer meats,Maxwell House coffee, Kraft and Velveeta cheese, Ritz crackers and Oreo cookies.
Philip Morris, which also owns the biggest tobacco company and the top-sellingcigarette brand Marlboro, said it plans to sell 280 million Class A shares ofKraft stock for between $26 and $31 a share before July 1.
According to a filing with the Securities and Exchange Commission, the number ofshares being sold could rise by 28 million shares if demand is strong enough.The prices per share cited in the filing are estimates and could be raised orlowered before the sale.
But those numbers indicate Philip Morris could raise between $7.3 billion and$9.5 billion in the sale. The biggest IPO to date in the United States was lastspring`s $10 billion-plus offering of stock in AT&T Wireless.
Philip Morris has been planning the Kraft offering since last summer when itannounced it was buying cookie and cracker maker Nabisco Holdings Corp. for whateventually amounted to $15.2 billion.
In its filing on Wednesday, Philip Morris said it would keep 275 million Class Ashares and all 1.18 billion of the Class B shares in Kraft after the offering.
That indicates that Kraft shareholders would own about 16 percent of the 1.7billion total Kraft shares.
But Philip Morris would control 97.7 percent of the voting rights in Kraftbecause the Class B shares carry 10 votes each while the Class A shares have onevote each.
The filing indicates that Philip Morris expects there will be strong interest inKraft despite the recent stock market slump that has driven some companies tocall off planned IPOs.
Philip Morris said it expects the offering to be completed by the end of thesecond quarter of 2001.
Food industry analysts say the Kraft Foods business is well-run and comprises avery profitable collection of popular food brands.
The company said Kraft stock would be traded on the New York Stock Exchange andsaid it had applied to use the KFT symbol.
The combined Kraft Foods and Nabisco operation had sales of $34.7 billion in2000 which made it the nation`s biggest food company and second worldwide onlyto Nestle SA of Switzerland.
Kraft brands also include Post cereals, Jell-O desserts, Kool-Aid drinks, ChipsAhoy cookies, Planters nuts and Life Savers candy.

[tobo]

Philip Morris says in a position paper that it wants to give the Food
and Drug Administration "meaningful, tough, and effective regulatory
authority over tobacco products." But a lot of bigwigs in Washington are
wondering if that`s, well, a smoke screen. FDA oversight should be the
last thing the nation`s largest cigarette maker would back.

Philip Morris` man-bites-dog effort has enhanced the chances that the
FDA will eventually regulate tobacco. Whenever an industry`s prime
player supports government intervention, odds are it will happen.

But nothing`s on the level in the capital; that goes double for the
politics of tobacco. So what`s Philip Morris up to? Steve Parrish, a
senior vice president, says that if regulation is coming, Philip Morris
should help shape it. "If there are issues or problems involving your
product, you have to be part of the solution process," he says. "If
you`re not, your problems will only increase." Moreover, the company
would rather face one set of federal rules than one each from 50 states. With "reduced risk" cigarettes, he adds, "we think it`s important for
the FDA to set some guidelines about what can be said about the health
claims of these products." Warnings on packages might include new FDA
wording about "safer" cigarettes.

Okay, so what is Philip Morris not saying? Even tobacco-friendly
Republicans have their theories. Louisiana`s Billy Tauzin, chairman of
the House Commerce Committee, suggests, "Philip Morris is the only
company big enough to survive FDA regulation." So if regulation
bankrupts the other tobacco firms, Philip Morris could charge whatever
it wanted to consumers addicted to its product. "I don`t think that`s
good," Tauzin adds.

Another notion--and worry--is that FDA regulation, no matter how
stringent, might be perceived as a government seal of approval. Overseas
that could result in higher cigarette sales in developing nations in
Asia and Africa. In this country, any sort of accord between the
industry and the FDA on how to describe "reduced risk" cigarettes might
also encourage people to believe that smoking cigarettes is safe. In
addition, says Iowa Congressman Greg Ganske, a physician and a Republican, "if [the industry] were able to get a sign-off from the FDA,
they think that would decrease their liability risk."

Public health experts see other nefarious plots. They assert that Philip
Morris` plan wouldn`t sufficiently curtail cigarette marketing. Nor
would it permit the FDA to demand changes in the basic contents of
cigarettes. "What Philip Morris wants is a government agency to review
new products as a way to promote those products as potentially less
hazardous," says Matt Myers of the Campaign for Tobacco-Free Kids. "This
is one of the most cynical public relations gestures it has ever tried."

Philip Morris disagrees. Parrish says the FDA would crack down if
cigarette makers used regulation as a sales tool. He also denies that
the company sees lawsuit protection if the FDA gets involved.

No matter. Something may well happen. Health and Human Services
Secretary Tommy Thompson says he favors FDA regulation of tobacco. And
GOP Senator Bill Frist of Tennessee has introduced a Philip
Morris-leaning FDA bill. The question is, How much regulation can pass?
Philip Morris doesn`t want much. Public health officials expect a lot.
As Ganske says, "Sometimes strange things happen once you start the
legislative process moving." Few things, however, are stranger than this.

[tobo]

BusinessWire, 05/7/2001 10:01

Philip Morris Incorporated Preserves Right to Orderly Appeal of Engle
Verdict

NEW YORK--(BUSINESS WIRE)--May 7, 2001--Philip Morris
Companies Inc. announced today that its domestic tobacco
subsidiary, Philip Morris USA, has obtained the trial court`s approval
of an agreement between Philip Morris USA and the Engle class that
ensures that the Engle judgment will remain stayed throughout the
company`s appeal of the Engle verdict.

The agreement was approved by the court earlier today.

"Because we believe the Engle verdict should be reversed, we
want our appeal to be heard on the merits and not face the risk that
the stay of the judgment would be lifted or would expire, and that the
plaintiffs would then demand full payment of the judgment before all
appeals could be fully heard," said William S. Ohlemeyer, vice
president and associate general counsel, Philip Morris Companies
Inc. "Philip Morris USA has acted in the best interests of our
shareholders by entering into an agreement that eliminates the
uncertainty associated with Florida`s bond cap legislation. While we
believe the Florida bond-cap statute is constitutional and would
withstand challenge, the agreement allows Philip Morris USA to
proceed with its appeal in an orderly manner and to focus its efforts
on reversing the case on its merits."

In July, 2000, the six-person jury in the Engle case returned a
punitive damage verdict of $74 billion against Philip Morris USA.
Florida`s bond-cap statute permitted the company to post a $100
million bond to prevent plaintiffs from demanding payment of the full
amount during the appeal. Prior to today`s agreement, this stay of the
judgment was subject to challenge in the trial court. The agreement
preserves Philip Morris` ability to pursue its appeal of the case in an
orderly manner through the United States Supreme Court.

As a result of today`s agreement and in addition to the $100 million
bond it has already posted, Philip Morris USA will put $1.2 billion into
an interest bearing escrow account. Should Philip Morris USA prevail
in its appeal of the case, both amounts would return to the company.
Philip Morris USA will also place an additional $500 million into a
separate interest bearing escrow account. If the company prevails
in its appeal, this amount would be paid to the court and the court
will determine how to allocate or distribute it consistent with the
Florida Rules of Civil Procedure.

Philip Morris USA has already begun its appeal of the Engle verdict.

"We are satisfied that we will now be able to concentrate our appeal
on the numerous errors that we believe occurred in the trial court
without having to be concerned about obtaining additional stays of
execution along the way," Mr. Ohlemeyer said.

To date, 31 courts across the country have refused to allow
smokers` claims against cigarette companies to proceed to trial as
class actions. In its appeal, Philip Morris USA will argue, among other
things, that under Florida law, the class should not have been
certified; that under Florida and federal constitutional principles,
compensatory damages for all plaintiffs in a trial must be determined
before punitive damages may be awarded; that punitive damages,
under state law, may financially hurt but cannot be assessed in an
amount so large as to financially destroy or bankrupt a defendant;
and there can be no entry of final judgment where "judicial labor,"
such as determining who is entitled to share in the punitive damage
award, remains to be done in a case.

"We believe the Engle verdict was the result of a class certification
that should never have occurred in the first place and an illegal and
unconstitutional trial plan that allowed the jury to ignore the individual
issues that must be considered before liability can be determined in a
smoker`s claim against a cigarette company," Mr. Ohlemeyer said.
"We are committed to giving these issues a full and fair hearing in the
Florida appellate courts and believe this agreement will help all
involved to do just that."

CONTACT: Philip Morris Companies Inc., New York

[tobo]

AP Online, 05/7/2001 14:48


Cigarette Cos. Agree on Minimum Pay



AP Business Writer
MIAMI (AP) - Three tobacco companies ordered to pay a record
$145 billion to sick Florida smokers agreed Monday to pay $710
million, no matter how their appeals turn out.
``That amount of money is guaranteed to the class win, lose or
draw,`` said Lorillard general counsel Ronald Milstein. ``We`ve
decided this is the surest path to (making) the appeals process
unencumbered and unhindered.``
The guarantee is the industry`s first major financial commitment
directly to smokers in nearly four decades of litigation. The
industry agreed in the late 1990s to pay $248 billion to settle
state lawsuits.
``Even if we were to lose ultimately, which I hope and pray would not happen, the class would be guaranteed $700 million,``
said smokers` attorney Stanley Rosenblatt.
Philip Morris, Lorillard and Liggett opted for the agreement to keep smokers from challenging the constitutionality of a new Florida law that places a $500 million cap on appeal bonds.
Without the law, the companies would have been required to buy
bonds worth more than the $145 billion verdict to be able to get
higher court review - an impossibly high requirement, in the
industry`s view.
A six-member jury set a U.S. record with the punitive damages
verdict last July. The same panel earlier decided that the industry
makes a deadly, dangerous product and awarded $12.7 million in
compensatory damages to three people representing between 300,000
to 700,000 sick Florida smokers or their families.
R.J. Reynolds and Brown & Williamson, the other two defendants,
have two weeks to decide whether to sign on. If they do, the amount
of the guarantee would increase.
If they don`t, they take their chances if Rosenblatt appeals the bond cap.

[tobo]

Philip Morris Confirms Court OK Of Engle Suit Pact

NEW YORK -(Dow Jones)- Phillip Morris Cos.` (MO) Philip Morris USA unit
received court approval of an agreement that ensures the Engle class-action
judgment in Florida will remain stayed throughout the company`s appeal of the
verdict.

In a press release Monday, Philip Morris said that in addition to the $100
million it already posted, Philip Morris USA will put $1.2 billion into an
interest bearing escrow account.

If Philip Morris wins its appeal of the case, both amounts would be returned
to the company.

The company also will place an additional $500 million into a separate
interest bearing escrow account, which will be paid to the court if the company
wins its appeal, with the court determining how to distribute the funds.

In July 2000, the six-person jury in the Engle case returned a punitive damage
verdict of $74 billion against Philip Morris USA.

Florida`s bond-cap statute allowed the company to post a $100 million bond to
prevent plaintiffs from demanding payment of the full amount during the appeal.

As part of Monday`s agreement, the plaintiff`s attorney agreed not to
challenge the Florida statute. Philip Morris and others had feared that if the
law was overturned, they would be forced to pay the full judgment, which could
push them into bankruptcy.

[tobo]

BLOCK TRADE - Philip Morris Cos. Inc. (NYSE:MO)
250,000 at $51.50, up $0.50, crossed by Salomon Smith Barney.

[tobo]

Fidelity Independence Fund Manager Turns to Tech, Tobacco in Wavering Market





BOSTON -- Fergus Shiel, manager of Fidelity Independence Fund, is taking an
unusual tack in today`s topsy-turvy market.

As of March 31, Mr. Shiel has socked away about 21% of the fund in information
technology stocks, including communications-equipment makers Juniper Networks
Inc. (JNPR) and Ciena Corp. (CIEN), whose fortunes are tied closely to the
growth of the Internet.

"I`m being selective," Mr. Shiel said in an interview released Thursday in
Boston-based Fidelity Investments` May mutual fund guide. "I want to own only
companies that are market leaders in their respective technologies."

At the same time, the manager has bet 35% of the fund on more Old Economy
consumer staples, most notably tobacco makers Philip Morris Cos. Inc. (MO) and
R.J. Reynolds Tobacco Holdings Inc. (RJR), the fund`s top two holdings.

Mr. Shiel says these stocks looked "cheap, their business prospects were
improving, and they had significant cash on their balance sheets."

The picks demonstrate Mr. Shiel`s eclectic style. Unlike many Fidelity funds,
he can invest in both "growth" stocks - issues from companies expected to report
strong earnings and sales growth - or "value" stocks - shares from companies,
perceived to be cheap based on earnings or other measures.

For now, Mr. Shiel says he has been more inclined toward growth, which hasn`t
helped his results of late. Fidelity Independence Fund, which changed its name
last year from Fidelity Retirement Growth Fund, is an aggressive offering that
soared 47% in 1999`s bull market, eked out a 1.7% gain last year and is down 14%
this year, through April 30, when the fund had almost $7 billion under
management, according to the guide.

[tobo]

Cigarette makers pay to avoid bond challenge


MIAMI—Three tobacco companies appealing the $145 billion punitive damages award against five cigarette makers in the landmark Engle case are paying nearly $2 billion in a deal that protects them from uncertainty surrounding Florida’s bonding requirements.

Philip Morris Cos., Lorillard Tobacco Co. and Liggett Group Inc. agreed to the deal, which was approved earlier this week by a state court in Miami. In exchange for the payment into an escrow account, plaintiffs attorney Stanley M. Rosenblatt agreed to end his threat to challenge as unconstitutional the Florida law that limits the bond each company must post to $100 million or 10% of its net worth, whichever is less.
Under the deal, the Engle class is guaranteed $709.7 million even if the plaintiffs lose the appeal. The plaintiffs agreed, though, not to seek to execute the punitive-damage award during the appeal.
William S. Ohlemeyer, associate general counsel at Philip Morris, said in a prepared statement that the agreement “eliminates the uncertainty associated with Florida’s bond-cap legislation.” The deal allows the tobacco maker to “proceed with its appeal in an orderly manner and to focus its efforts on reversing the case on its merits.”
Philip Morris is paying $1.2 billion in addition to the $100 million bond it already posted. Those amounts will be returned to the company if it wins the appeal. Another $500 million paid by Philip Morris will be nonrefundable, funding the largest portion of the $709.7 million guaranteed to the Engle class.
Lorillard and Liggett are paying the remainder of the escrow amounts. Defendants R.J. Reynolds Tobacco Co. and Brown & Williamson Tobacco Corp. have yet to decide whether to join the agreement.

[tobo]

Kraft Foods IPO price range amended to $27-$30 a share

Friday May 11, 8:40 AM EDT

WASHINGTON, May 11 (Reuters) - Kraft Foods Inc. amended the
price range for its initial public offering of 280 million common class A shares to $27-$30 a share from $26-$31, the unit
of food, beverage and tobacco conglomerate Philip Morris Cos
Inc. (MO) said on Friday.
Kraft, whose IPO could be one of the biggest U.S.
offerings, reported the revision in an amended filing with the
Securities and Exchange Commission.
The Northfield, Ill.-based company, whose products include
macaroni and cheese and Oscar Mayer hot dogs, predicted it will
net $7.8 billion in proceeds if the shares sell for $28.50 apiece. It plans to use the money to retire a portion of
long-term notes payable to Philip Morris.
Kraft has applied for a New York Stock Exchange listing
under the symbol "KFT" (KFT) and the IPO is being managed by
Credit Suisse First Boston, Salomon Smith Barney, Deutsche Banc Alex Brown and J.P. Morgan, among others.
It was not immediately known when Kraft will debut.

[tobo]

Ahead of Kraft IPO, Philip Morris seeks input on deal from potential investors



The Wall Street Journal - US Abstracts; May 14, 2001


Institutional investors report that the underwriters of an IPO of Philip Morris Cos.` Kraft Foods Inc., Citigroup Inc.`s Salomon Smith Barney and Credit Suisse Group`s Credit Suisse First Boston, are "premarketing" the deal to a degree not seen before. According to some investors, the $26-$31 share-price range filed on May 2 by the company is the result of detailed survey of potential investors. The price range has been further narrowed to $27-$30, which insiders say was at the request of the Securities and Exchange Commission. According to one Kraft underwriter: "The issuer is paying out a lot of fees, and they want to make sure they`ve got, candidly, all the horsepower lined up working for them."

[tobo]

R.J. Reynolds Tobacco Company Wins Individual Smoker Suit



RJR; MO





R.J. Reynolds Tobacco Company Wins Individual Smoker Suit
WINSTON-SALEM, N.C., May 16 /PRNewswire/ -- In the first New Jersey smoking case to go to trial in 13 years, a New Brunswick, N.J., jury found unanimously today that R.J. Reynolds Tobacco Company and Philip Morris, Inc. (NYSE:MO) are not liable for damages for the illness and death of Constance Mehlman.
"The jurors understood that smokers have long been aware of the well-known and inherent risks of smoking, and that people who choose to smoke in the face
of these known risks should not be financially rewarded," said Peter J. Biersteker, Reynolds Tobacco`s lead attorney on the case.
Daniel W. Donahue, senior vice president and deputy general counsel for Reynolds Tobacco, noted: "Today`s verdict reconfirms the strength of our defenses in individual lawsuits. The jury evaluated all of the case`s
evidence in this context and concluded the Mehlmans` claims lacked merit.
"Ms. Mehlman was well aware of the risks associated with smoking, which
are and have been common knowledge for many decades," Donahue said. "Ms. Mehlman, who smoked for approximately 23 years, assumed these risks when she
chose to smoke and to continue smoking.
"This verdict is a victory for common sense and should put plaintiffs`
attorneys on notice that jurors will not reward plaintiffs, who make a fully
informed decision to smoke."
Donahue noted that this verdict continues a significant trend among courts
and jurors rejecting claims brought by individual smokers against the tobacco industry.

[tobo]

Russian Court Dismisses Suit


MOSCOW (AP) - A Moscow court on Thursday threw out a hard-line Russian lawmaker`s lawsuit accusing cigarette makers Philip Morris and British American Tobacco Co. of deceiving consumers by concealing information about their Russian factories, a news report said.Lawmaker Alexei Mitrofanov, a member of nationalist Vladimir Zhirinovsky`s political party, writer Alexander Sorokin and economist Sergei Cherednichenko filed a civil suit earlier this year demanding 500 million rubles ($18 million) in damages. Mitrofanov said he was protesting the absence of information about producers and of an address where complaints can be filed.Moscow`s Kuntsevo municipal court rejected the lawsuit on Thursday, the Interfax news agency reported. The report gave no details of the ruling.
While foreign cigarette brands dominate the Russian tobacco market, many of them are produced at factories in Russia. Packaging generally carries no information about the location where the cigarettes were made.

[tobo]

Russian Court Dismisses Suit


MOSCOW (AP) - A Moscow court on Thursday threw out a hard-line Russian lawmaker`s lawsuit accusing cigarette makers Philip Morris and British American Tobacco Co. of deceiving consumers by concealing information about their Russian factories, a news report said.Lawmaker Alexei Mitrofanov, a member of nationalist Vladimir Zhirinovsky`s political party, writer Alexander Sorokin and economist Sergei Cherednichenko filed a civil suit earlier this year demanding 500 million rubles ($18 million) in damages. Mitrofanov said he was protesting the absence of information about producers and of an address where complaints can be filed.Moscow`s Kuntsevo municipal court rejected the lawsuit on Thursday, the Interfax news agency reported. The report gave no details of the ruling.
While foreign cigarette brands dominate the Russian tobacco market, many of them are produced at factories in Russia. Packaging generally carries no information about the location where the cigarettes were made.

[tobo]

Future food mergers may be ordered off a smaller menu


CHICAGO, May 17 (Reuters) - A wave of food industry
consolidation that in the past two years has eaten up such big
names as Nabisco (NYSE NGH), Keebler, Pillsbury, and Quaker Oats


(NYSE OAT) may move down the food chain to mid- and smaller-cap
companies in specialized areas such as baking and functional
foods.
Analysts said big foodmakers such as Philip Morris Cos.
(NYSE MO), Kraft Foods, and Kellogg Co. (NYSE K) are left with few
potential targets their own size. Instead, they are likely to
pursue smaller targets to continue to spur sluggish top-line
growth, which in recent years has averaged only 2 to 3 percent,
and to meet increased demands from growing retailers.
"There`s an acquisitive appetite. Companies feel they have
to be opportunistic," said Merrill Lynch analyst Leonard
Teitelbaum. "Mid-cap moves to the large-cap or mid-cap buys
small-cap. That`s the scenario that could very easily happen."
For big companies that may still be digesting large
acquisitions -- like Kellogg`s buyout of snack-maker Keebler --
smaller targets may now make more sense. They allow companies
to keep their focus as they merge manufacturing and systems,
trim staffs, and realign sales teams. Companies will not ignore
smaller opportunities with the right price and product lines,
analysts said.
DESSERT ANYONE?
Just because the big food companies have chowed down on
their competitors in recent years, they are still signaling
a willingness to stay at the acquisition table for another
course.
"If there`s an asset that they`re interested in, in a
category that they`re interested in, I think they would take a
look," said Goldman Sachs analyst Romitha Mally.
Added Prudential Securities analyst John McMillin: "Even
though you`re digesting a large dinner, you might have a little
room for dessert."
One category that remains attractive is baking, an industry
that is still somewhat fragmented, and could benefit from the
distribution channels of larger companies with national scale.
Following the sale of Best Foods to Canada`s George Weston
Foods Ltd. (AUS:WEG) in February, hungry bidders remain on the
prowl and might take interest in U.S. companies such as Tasty
Baking (NYSE TBC), Interstate Bakeries Corp. (NYSE IBC), and former
Keebler corporate parent Flowers Foods Inc. (NYSE FLO), Merrill
Lynch`s Teitelbaum said.
Philadelphia-based Tasty Baking Co., a maker of snack cakes
for retailers in the mid-Atlantic states, said at its April
annual meeting it wouldn`t ignore potential buyout offers.
Interstate Bakeries and Flowers Foods have both faced
financial struggles of late, making takeovers seem plausible.
Interstate, the maker of Hostess Twinkies, has seen plant
strikes and consolidation problems weaken sales and earnings,
while Georgia-based Flowers, saddled by woes at its Mrs.
Smith`s pies unit, has also disappointed Wall Street.
Mexican bakery Grupo Bimbo (MEX:BIMBOA) has been named as a potential buyer for Interstate, whose Southeast baking
operations could build Bimbo`s regional presence, Prudential`s
McMillin said. Interstate did not return calls seeking comment,
while Grupo Bimbo couldn`t be reached for comment.
Sara Lee Corp. (NYSE SLE), the Chicago-based consumer conglomerate that has generated ample free cash from recent
sales of noncore units, could also be interested in baking
companies, analysts said. The Chicago-based company has
reportedly had discussions with Flowers in the past.
"We`ve said we will acquire," said Sara Lee spokeswoman
Julie Ketay, who declined to discuss specifics. "If it`s a
company that fits our new reshaped business portfolio, we will
consider an acquisition."
That portfolio includes food and beverages, with a sizable
baked goods unit.
Flowers declined to comment about buyout prospects.
PARTNERSHIPS MAKE SENSE
Mid-caps are also partnering with each other in an effort
to better face growing competition, particularly in industries
where complementary players can bolster each other`s geographic
scale.
In the highly fragmented dairy industry, for instance,
Texas-based Suiza Foods Corp. (NYSE SZA), the largest U.S. dairy,
in April agreed to buy its biggest rival, Dean Foods Co. (NYSE DF)
of Illinois, for $1.5 billion in cash and stock. Together they
will generate more than $10 billion in annual sales.
"I think there needs to be more consolidation among the
mid-tier in order to do a better job of competing with the big
boys," said William Blair analyst Ellen Baras.
Companies in high-growth areas such as functional foods --
those containing additives making specific health claims --
might consider merging with a larger player to leverage
marketing and distribution to get their products out of niche
markets and onto larger grocers` shelves.
For example, Hain Celestial Group Inc., the maker of
Celestial Seasonings teas and health foods under the Arrowhead
Mills and Healthy Valley labels, is on analysts` radar screen
as an attractive candidate for bigger companies.
San Jose, California-based Hain projects double-digit 2001
earnings growth in its fast-growing health foods offerings, a
hot area where big companies such as Kraft Foods and General
Mills (NYSE:GIS) have already snapped up smaller players to enter
the category.
Hain, whose CEO in the past has dismissed the idea of a
buyout in the near-term, did not return calls seeking comment.
Heinz, which owns a 19.5 percent stake in Hain and has been
named as a possible suitor, also declined to comment.
Indeed, plenty of attractive companies remain in the small-
and mid-cap arena, analysts said. Also included on their lists
were Illinois-based corn refiner Corn Products International
Inc. (NYSE:CPO) and California-based companies Dreyers Grand Ice
Cream Inc. and fruit and vegetable producer Del Monte Foods Co.
(NYSE DLM)

[tobo]

Summer is beer season for U.S. brewers



NEW YORK, May 20 (Reuters) - As beer drinkers scoop up brews this week for Memorial Day barbecues, brewing companies are preparing for what they hope will be another hot summer of sales.
The first two weeks of May were warmer than average across the continental United States, giving the key beverage season an early start.
But it`s still early. Last year`s cooler- and wetter-than-normal June and July in the Northeast and Midwest triggered volume concerns and sent brewer`s share prices sliding late in the season.
"Weather is an important factor in the business. You get a cold rainy Memorial Day and nobody is going to be happy," said Sanford C. Bernstein beverage analyst William Pecoriello.
Analysts said Anheuser-Busch (BUD, news) Cos Inc. is poised to maintain its lead going into the summer, which many people see starting with the Memorial Day holiday. Memorial Day is May 28.
Anheuser-Busch said sales to retailers jumped 2.7 percent in the first six weeks of the second quarter, a much stronger increase then the 0.3 percent increase registered for the whole of the first quarter.
And, according to UBS Warburg`s Caroline Levy, Miller distributors have said that volumes have substantially improved in the last few weeks, moving from negative to positive in some of the largest markets.
"I think it`s shaping up as a pretty good summer for the industry," said J.P. Morgan beverage analyst John Faucher.
Miller Brewing Co., the No. 2 player and a unit of Philip Morris (MO, news) Cos Inc. , saw its volume drop in recent quarters, but has said it is addressing its challenges. Miller is gearing up for a new advertising campaign and plans to boost its media spending budget.
Miller will increase its overall media spending by 20 percent this year to more than $300 million, a source familiar with the company said. It, like other beverage makers, spends a higher percentage of its budget on summer campaigns than during the rest of the year, as the summer centers around Memorial Day, Independence Day, Labor Day and the start of the football season.
Analysts said wholesalers seem very excited about Miller`s new advertising campaign, which they saw a few weeks ago.
"The distributors are more excited than they`ve been in probably seven years about the advertising lineup, so I think the quality of the media should be much better," Levy said.
Miller also plans to promote its brand in Texas bars this summer, giving consumers a chance to star in a Miller television spot.
Meanwhile, marketing from Adolph Coors (RKY, news) Co. , based in Golden, Colorado, and the third-largest U.S. brewer, continues to lag.
"Until they change their marketing, Coors Light is not going to be gaining share of the light segment," Pecoriello said of the company`s "Beer Man" campaign.
Levy expects Coors to keep using regional promotions to boost sales. "Coors is not really in a position to ramp up spending because they are most vulnerable to things like energy costs, they work on the lowest operating margin of the three."
She also noted that Coors has a big capital project underway this year to up its capacity. "It`s very difficult for them to increase media spending beyond original plan, and the original plan`s not working right now."
While the weaker U.S. economy has hit sales of some products, analysts say beer has not been hit by consumer woes.
"The economy in general, we think, is having very little impact as evidenced by the strong growth in imports in the high end," Pecoriello said. "No one`s trading from imports down to premium, and no one`s trading from premium to popular."
ARE FLAVORED ALCOHOLIC DRINKS IMPACTING BEER SALES?
Smirnoff Ice, a citrus flavored malt beverage launched by Diageo Plc`s Guinness Bass Import Company/UDV North America Inc., has made strong headway into the alternative alcoholic drinks segment since its February introduction, and loads of cider and hard lemonade brands, like K Cider from Constellation Brands (STZ, news) Inc.`s Canandaigua Wine (STZ, news) Co., are making some headway as consumers try out new flavors.
"I think those alternative products are doing well, but we have to remember they`re tiny," Levy said. "Smirnoff (Ice) is not that tiny, but the cider business is very tiny," she said.
The flavored beverage market was worth $858 million in 2000, according to Mintel, an independent consumer market research company. While that number may seem substantial, Anheuser-Busch alone had over $12 billion in sales last year.
ANHEUSER-BUSCH MAY SOON ADD IMPORT TO LINEUP
Anheuser-Busch said last week that there is a chance it will land a European import license in the next few months, and analysts say the most likely brand would be Beck`s.
Faucher said such a deal could create more competition in the import segment, which would theoretically have an impact on Heineken or other import brands. But he sees any impact to Miller or Coors as "marginal."
Levy said two lesser-known German brands are also possibilities, and Pecoriello said there`s a 30 percent chance that the brand could be Bass.
"Either one would be a great addition to the portfolio," Pecoriello said of Beck`s and Bass.
Pecoriello also noted that Anheuser-Busch has 50 percent ownership of the popular Mexican brand Corona, "which should have a good summer as well."
Shares of St. Louis-based Anheuser-Busch have performed roughly in line with the broad Standard & Poor`s 500 index since the beginning of the year, while shares of Coors have underperformed the S&P 500 by more than 30 percent. Shares of Philip Morris, whose other units make cigarettes and food, have outperformed the index by about 13 percent.

[tobo]

Kraft Underwriters Incorrectly Released Marketing Form to Potential Investors


WASHINGTON -- Underwriters for the initial public offering of Kraft Foods Inc. inappropriately released to potential investors a premarketing form that could
be misinterpreted as a prospectus, the company said in a filing with the
Securities and Exchange Commission.

Kraft, Northfield, Ill., said the information that was released in the form
could be mistaken for a prospectus that fails to meet the requirements of the
Securities Act of 1933. As a result, the action of the underwriters could allow
some IPO purchasers the right to seek refunds or damages.

"The feedback form was for internal use only and was designed to elicit orally
certain information from designated accounts as part of designing strategy in
connection with this offering," Kraft said in the filing. The company didn`t
specify further the nature of the information on the form, and didn`t name the
underwriters responsible for the form`s release.

Attempts by IPO investors to recover losses likely won`t have a significantly
negative effect on Kraft`s financial position, the company said.

Also in the filing, Kraft urged prospective IPO buyers to base their
investment decision on prospectuses released by the company. Officials from
Kraft weren`t immediately available for comment on Monday.

Credit Suisse Group`s Credit Suisse First Boston Corp. and Citigroup Inc.`s
Salomon Smith Barney are the lead underwriters for the IPO, and more than a
dozen other firms are co-managers. The IPO currently is sized at 280 million
shares and valued at about $7.6 billion, or $27 to $30 a share. It is likely to
be the second-biggest offering in U.S. history, behind AT&T Wireless Group Corp.
The company expects the IPO to take place in mid-June.

Although the pre-IPO roadshow for the Kraft deal hasn`t even begun, mutual-
fund managers and other institutional investors have said that in recent weeks,
the IPO`s underwriters have been premarketing Kraft to an unprecedented degree.

Working under what one knowledgeable person has described as an "aggressive
time frame" mandated by Philip Morris Cos., the food company`s parent,
underwriters were told to approach potential investors with a multi-page survey.
The goal: to get early, specific feedback about the IPO and consensus on which
consumer-products companies to use for benchmarking Kraft. The survey used a
check-the-box format, as well as blank spaces to allow potential investors to
flesh out their opinions. Underwriters then collected the reports and returned
them to Philip Morris for evaluation.

Kraft said in the SEC filing Monday that investors who received the form from
underwriters and who then purchased stock in the offering could seek a refund of
their purchase price or could recover losses resulting from the purchase and
subsequent sale of the stock "for a period of one year from the date of the
violation." The company didn`t list a date of any potential violation.

[tobo]

Tobacco company can`t light up at Indy 500 as Penske finds out


Indy team was forced to remove the Marlboro name from its cars before Thursday`s
final practice for the Indianapolis 500 to avoid violating the 1998 tobacco
settlement.
Penske`s two drivers, Gil de Ferran and Helio Castronevis, had the Marlboro
brand name and logo on their cars during qualifying and most practice sessions
this month. But questions were raised about the legality of promoting Philip
Morris, which agreed to restrictions on advertising as part of the
three-year-old agreement.

Under the settlement, Penske`s team is allowed to use the Marlboro name when it
competes on the Championship Auto Racing Teams (CART) circuit.

The Indy 500, however, is sanctioned by the rival Indy Racing League. Penske,
who was part of a CART boycott of Indy the last five years, decided to return
this year with cars that met IRL guidelines.

CART opened a slot on its schedule to allow its teams to compete in the Indy
500. Penske thought that made it possible for his teams to retain the Marlboro
name for Sunday`s race.

"CART specifically sanctioned us running this race," Penske said. "They made a
change to accommodate a team like us. To me, this is an international event,
like the Masters, which is open to everyone."

But the National Association of Attorneys General, which oversaw the tobacco
settlement, contacted Philip Morris last week to raise questions about Penske
using the Marlboro name.

Philip Morris agreed to remove its advertising from the cars on Wednesday, just
four days before the race. When de Ferran and Castronevis and rolled onto the
track for the final practice, the sidepods of their cars were plain white.

Penske also agreed to remove the Marlboro name from uniforms worn by the drivers
and crew, as well as the equipment used in the pits.

As for Penske, he was still wearing a black jacket with the Marlboro Team Penske
logo.

"I`m just here to race," Castronevis said, looking at the blank spot on his car
as it sat in the garage in Gasoline Alley. "Maybe they should put our names -
Helio and Gil."

Brendan McCormick, a spokesman for Philip Morris, said his company would
maintain its financial support of Team Penske for the race, even though it won`t
benefit from the exposure.

Philip Morris has sponsored Team Penske for 11 years.

"This is a long-term sponsorship," McCormick said. "They have been very
supportive of our commitment to deal with this issue, and our commitment is
still there for them. We`re hoping things go well this weekend."

[tobo]

RESEARCH ALERT-Analyst trims view on Adolph Coors

NEW YORK, May 24 - Deutsche Banc Alex. Brown`s
beverage analyst cut his earnings estimates on Adolph Coors Co.

(NYSE:RKY) on Thursday due to competitive pressures, especially
from Philip Morris Cos Inc.`s (NYSE:MO) Miller Brewing Co.
Analyst Marc Greenberg said that based on an informal
wholesaler survey he conducted across several major markets, he
sees double-digit volume growth in the second quarter for
Anheuser-Busch Cos Inc.`s (NYSE:BUD) Bud Lite brand, as well as
imports Heineken and Corona.
"On the whole, the results bode well for continued success
at Anheuser-Busch and improvement for Miller, while Coors`
results are less consistent," Greenberg said in a note.
Greenberg cut his 2001 earnings per share outlook on
Golden, Colorado-based Coors to $3.26 from $3.31 and trimmed
his 2002 EPS estimate to $3.59 from $3.64. He cut his price
target on Coors shares to $59 from $62.
Analysts, on average, currently expect the company to earn
$3.22 for 2001 and $3.56 for 2002, according to Thomson
Financial/First Call.
Shares of Coors were off $1.86, or 3.57 percent, at $50.18,
after tapping a new 52-week low of $49.60 earlier in the day.

[tobo]

Kraft takes out IPO ads in unusual move


NEW YORK, May 24 - Kraft Foods Inc., in an
unusual move for a company about to go public, took out large
newspaper advertisements on Thursday to promote its
multibillion dollar new stock offering scheduled for early
June.

The initial public offering (IPO) registration process is
strictly governed by U.S. securities law that forbids the
release of information material to the company`s earnings and
outlook that is not included in the prospectus, or official IPO marketing document.
Typically companies wait until after they have gone public
to publish a "tombstone" in newspapers heralding the success of
their new stock sale. But Kraft, a unit of food and tobacco
giant Philip Morris Cos Inc. (NYSE:MO) on Thursday flagged its
upcoming IPO in advertisements in The Wall Street Journal.
The ads told readers that 280 million shares were being
offered at an expected price range of $27 to $30 apiece, in an
IPO scheduled for the week of June 11. Readers were provided
with Web site addresses for the online prospectus and the
underwriters Credit Suisse First Boston and Salomon Smith
Barney.
"Definitely it`s unusual," said Reena Aggarwal, associate
professor of finance at Georgetown University school of
business. "From a legal point of view you`re not supposed to
put out any material information except the prospectus -- that is supposed to be the marketing information."
"But this is basically pointing you to the Web site where
you can get the prospectus and that should be perfectly
alright. They`re not advertising any new information."
Earlier this week it was revealed that underwriters
involved in the IPO incorrectly gave internal forms to certain
potential buyers of Kraft`s common stock, according to
documents filed with the Securities and Exchange Commission on
Monday.
"I would have that they had cleared it with their
attorneys," Aggarwal said of Kraft`s advertisements.
Philip Morris said on Wednesday it is taking its Kraft
Foods show on the road. Analyst said the road show began in the
United States this week and will move overseas to Europe after
Memorial Day.
Kraft, based in the Chicago suburb of Northfield, Illinois,
expects to raise as much as $8.4 billion when it goes public.
The IPO could be the second-largest in U.S. history, behind
last year`s $10.6 billion AT&T Wireless Group Inc. (NYSE:AWE)
deal.

[tobo]

EU Proposes New Ban on Tobacco Ads

BRUSSELS, Belgium (AP) - The European Union`s head office
proposed tough new restrictions on tobacco advertising Wednesday
that could outlaw cigarette ads in newspapers, magazines and at
international sports events around the EU.
The European Commission`s proposals - which would also ban
tobacco ads on radio and the Internet - came after a previous ban
was overturned in October following a court challenge by the German
government, tobacco firms and advertising companies.
EU Health Commissioner David Byrne said he was confident the new
rules would win approval from EU governments, withstand any legal
challenge and become law across the 15-nation bloc by 2004 as part
of his drive to reduce smoking.
``Smoking kills over half a million EU citizens per year,
robbing people years of life expectancy,`` Byrne said. ``These lost
consumers have to be replaced through advertising and promotion.``
The proposal is expected to run into stiff opposition from
Austria and Germany when Byrne presents it to a meeting of EU
health ministers Tuesday in Luxembourg.
Major tobacco companies reacted cautiously to the proposals.
In a statement, Philip Morris said it welcomed restrictions that
limit children`s exposure to cigarette advertising, but said
regulations should ``permit such marketing to be directed toward
adult smokers.``
Tim Smith, senior director of Japan Tobacco International in
Geneva, said his company needed time to study the proposals but
added ``advertising and sponsorship are natural elements of
competition and an important means of communication.``
Byrne is trying to get the rules approved as an internal trade
measure that requires the backing of a majority of EU nations,
rather than unanimity.
Germany succeeded in blocking the previous ban when the European
Court of Justice backed its assertion the restrictions were a
public health law which needed unanimous support from all 15
governments.
But Byrne said the court ruling held out the prospect that
correctly drafted trade legislation could be used to prohibit
certain kinds of advertising.
``The new proposal takes full account of the judgment of the
Court,`` Byrne said. ``The Commission has given full attention to
ensuring that its new proposal is legally and scientifically
sound.``
By focusing on advertising that crosses borders within the EU,
Byrne believes he can get the proposal adopted under the majority
vote procedures. He has dropped plans in the previous bill to ban
tobacco advertising in cinemas and billboards.
``A vast majority of member states are in favor of this
proposal, as is the European Parliament,`` he said.
Byrne has pledged to continue a drive to cut the number of
smokers in the EU from the current ratio of around a third of
adults to levels in the United States, where around one in five
smoke.
This month, the European Parliament voted into law his proposals
to force tobacco companies to cut the level of tar and nicotine in
cigarettes and increase the size of health warnings on packages.
The EU already bans tobacco advertising on television and
several EU nations including France, Italy, Portugal and Finland
have wider restrictions similar to those proposed for the whole
Union.