Philip Morris U.K. Bid Should Succeed

Press, Volume CVIII, Issue 31763, 21 August 1968, Page 16

Philip Morris U.K. Bid Should Succeed

(N.Z. Prist

LONDON, August 19.

There were signs tonight that the United States tobacco giant, Philip Morris, will win its bid—the second in a matter of months—to gain control of one of Britain’s tobacco firms.

I A few weeks ago they offered £46m for a half interest in Gallahers. Britain’s second-biggest cigarette manufacturer, but later withdrew, after being outbid by their own American rivals, the American Tobacco Company. This morning holders of the 1.5 m shares in Godfrey Phillips, one of the smaller British cigarette companies, were offered 145 s s share by Philip Morris. On Friday, before the American £U3m offer was announced, the British company’s shares were priced at about 120 s each. Should Succeed

Several developments today made it almost certain that the American bid will succeed. The stock market lifted Godfrey Phillips’ shares to nearly 145 s each—level with the take-over price—but no higher, suggesting that the market is satisfied with the terms.

Godfrey Phillips’ directors have offered to band over their own shares. They control about 37 per cent—and advised others to do the same.