Here's the full story off CNNfn....
Tobacco firms snuff deal
Cigarette companies plan to pull out of
existing tobacco settlement pact
Live: RJR Nabisco CEO
April 8, 1998: 1:10 p.m. ET
Clinton: tobacco
pact likely - April
3, 1998
Tobacco bill
draws fire - April
2, 1998
Tobacco BBS
RJR Reynolds
NEW YORK (CNNfn) - Shares of tobacco
companies rose after word surfaced that the five
major tobacco companies are withdrawing their
support for federal legislation to raise the cigarette tax
and curtail teenage smoking.
The five companies are RJR Nabisco Holdings
Co., parent of R.J. Reynolds, Philip Morris Cos.,
Lorrilard, Brown & Williamson and U.S. Tobacco.
Shares of RJR Nabisco (RN) were up 1-1/16 to 30
while Philip Morris (MO) gained 1-15/16 to 39-1/2.
U.S. Tobacco (UST) gained 1-7/16 to 30-5/16.
Brooke Group (BGL), parent of Liggett Group, rose
3/16 to 15-3/4.
Tobacco stocks had fallen earlier in the week,
edging near their 52-week lows.
Roy Burry, tobacco analyst at CIBC Oppenheimer,
said if any investors were thinking about buying
tobacco stocks, "Now is the time."
"The stocks have performed very poorly over the
last six to nine months and now we have the
realization that if nothing comes out of Congress, it's
back to litigation. That's fine. The industry was doing
just fine with that."
The Clinton Administration officials told CNN that
White House allies in the tobacco debate had been in
contact with Reynolds officials but were unable to
change the company's position.
One senior White House aide said it was unclear if
Reynolds' decision was permanent or part of an effort
by tobacco companies to pressure Congress to change
provisions of the legislation to make it more palatable
to tobacco companies.
President Clinton, during a tour of a Chicago
school, said he hoped R.J. Reynolds would reconsider,
but said it is critical for Congress to act on the issue
regardless of the company's position.
"I've been working for two years on this and I don't
intend to stop now," the President said. (128K WAV)
or (AIFF)
The tobacco industry reached an agreement with
attorneys general from 39 states in June 1997 to pay
$368.5 billion in a settlement to cover the health care
costs of people with smoking-related illnesses.
That settlement still has to be enacted by
Congress. Last week, the Senate Commerce
Committee approved a bill that would require the
tobacco industry to pay $516 billion over 25 years, a
move that angered tobacco companies. |
