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

To: dper who wrote (1361)	4/10/1998 7:54:00 AM
From: Ralph Bergmann	Respond to of 6439

Danger to loose it all... Thursday April 9, 6:45 pm Eastern Time Oklahoma still sees national tobacco deal likely OKLAHOMA CITY, April 9 (Reuters) - Oklahoma Attorney General Drew Edmondson said Thursday he believes a national tobacco settlement is still possible even after top tobacco companies pulled their support from the proposed deal in Congress. ''I think the chances are still better than 50-50 that we are going to end up with a national bill,'' Edmondson told Reuters. But he also said anti-tobacco activists and legislators should be careful about pushing for too many concessions in a national settlement because they risk losing it all. ''I would hate for the chances of passing comprehensive legislation to fail because we wanted a bill that was perfect. If the good guys haven't counted the votes (in Congress), that may be exactly what happens, that we lose the chance to do something historic in the public interest because some people felt it didn't bash the industry enough,'' he said. On Wednesday, RJR Nabisco Holdings Corp. (RN - news) Chief Executive Steven Goldstone said a proposed $368.5 billion settlement agreed last year by the tobacco industry and the attorneys general of 40 states was now ''dead'' because it had been dramatically changed in Congress. Philip Morris Cos. Inc. (MO - news) and other cigarette companies backed Goldstone, while also seeming to remain open to further contacts with Congress and the White House. Edmondson said he thought -- and hoped -- the tobacco companies were adopting a tough negotiating stance, rather than walking away from a deal altogether. ''I think it suits the industry at this point in time to at least give the appearance of intransigence. Only time will tell whether that is real or whether it is a strategy,'' he said. Oklahoma is one of three states scheduled to take the tobacco industry to trial this year and is scheduled to do battle in court starting November 11. Edmondson said the state's legal team had planned its case assuming there would be no national settlement and was in good shape to take it into court if necessary. ''I think it's a winner. I think it is a good case. We have done well in procedural motions to date and I feel very good about the lawsuit,'' he said. Oklahoma is looking for $1 billion in damages from the lawsuit, but Edmondson said it would get almost $3 billion from a national settlement and that measures aimed at tightening regulations on tobacco products and its advertising strategies would be more effective at a national level. ''So much more could be accomplished with a global settlement than in any particular lawsuit or any combination of lawsuits,'' he said. More Quotes and News: Philip Morris Companies Inc (NYSE:MO - news) RJR Nabisco Holdings Corp (NYSE:RN - news) Related News Categories: US Market News Help Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon See our Important Disclaimers and Legal Information.

To: dper who wrote (1361)	4/10/1998 10:20:00 AM
From: Maven	Respond to of 6439

Can Phillip Morris separate its tobacco business from its food business? Yes, it can, but I believe the lawsuits it faces are against the COMBINED entities, and a separation at this time will not relieve the food portion of liability. I'm not a legal-type and leave this to others to clarify. However, the tobacco industry is not impotent. They manufacture cigarettes on a global basis, and could just as well produce Marlboro in Turkey or Poland as in Virginia. I recall reading that over 40% of the tobacco used is imported, so it would make little difference to the companies if they shifted their headquarters and manufacturing overseas. The high-tech industry assembles a huge portion of their product overseas, from Mexico to Ireland. Why not tobacco? It is about time that the tobacco companies got up on their hind legs to counter the charges against them and to bring their case to the public. In my opinion, it won't buy much for them--it's difficult to match the pulpit that can be mustered by an incumbent President and glory-seeking Congressman, especially when they wrap themselves in righteousness for the sake of "our children". (Such hypocrisy revolts me to the point of nauseousness.) But it may gain industry their best defense--a delay. As others have noted, a compromise is in the best interest of all parties, but in this vengeful environment against the tobacco 'evil-doers', I doubt that this is possible. If the industry can delay any meaningul legislation, it will be a virtual victory, and I believe this is what their strategy is aimed at. We'll know more when their media blitz comes out. Meanwhile, I'm buying LEAPS. Robert S. Sheldon