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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (1294)	4/2/1998 2:37:00 PM
From: Geoff	Read Replies (1) \| Respond to of 6439

I just typed this whole thing in cause I couldn't find it on the web yet..... ============= Washington, April 2 (Blooberg)--"RJR Nabisco Holdings Corp will formally withdraw from the settlement the major tobacco companies signed last year with the state attorneys general, according to two RJR officials familiar with the company's plans. The decision came after the Senate Commerce Committee approved a bill that would cost cigarette makers at least $506 billion, give the government authority to reulate nicotine and impose advertising restrictions, while providing only a portion of the liability limits contained in the last June's $368.5 billion settlement. The bill includes a consent decree settling the states' lawsuits against the industry. RJR's decision makes it clear that the RJR won't sign that consent decree and puts the burden on Congress to either rewrite the bill or pass legislation without the industry's consent. The first reaction from Congress was to dismiss the withdrawal. "We don't need the industry for our bill," said Sen. Patrick Leahy, a Vermont Democrat. Industry analysts said the Senate bill, drafted by Sen. John McCain of Arizona, is just too expensive for the industry, especially for a cash strapped RJR. "A piece of legislation like the McCain bill really could bankrupt them," said David Adelman, a tobacco analyst at Morgan Stanley Dean Witter Discover, Inc. "This really is like asking the company if they want to commit suicide." RJR CEO Steven Goldstone is set to formally announce the company's decision when he speaks at the National Press Club in Washington on Wednesday. -- Richard Keil in Washington (202) 624-1844