British American Tobacco (BAT) Takes over Reynolds

[Darka]

Might be of interest to those that hold BATS.

http://www.bbc.co.uk/news/business-38647864

[idpickering]

Might be of interest to those that hold BATS.

http://www.bbc.co.uk/news/business-38647864

Certainly of interest to me, thank you. Curious how what appears to be a good move by BATS resulted in a near 4% drop in SP yesterday. Can't surely be totally due to the rise in sterling? Did anyone dip their toes at the discount on offer? I'm more tempted by Imperial, but tobacco already forms 10% of my HYP.

Ian.

[Dod1010]

It is buying a US business at a time when the USD/Sterling exchange rate is not exactly favourable and is taking on a lot of (hopefully) short term debt. I should imagine that these factors have played a part in the decline in the share price. Markets do not like this sort of thing. However given BAT's record I do not think we shareholders should be too concerned and anyway as far as the tobacco's are concerned I am only looking at the dividend unless of course Imps gets an offer from somebody!

Dod

[idpickering]

It is buying a US business at a time when the USD/Sterling exchange rate is not exactly favourable and is taking on a lot of (hopefully) short term debt. I should imagine that these factors have played a part in the decline in the share price. Markets do not like this sort of thing. However given BAT's record I do not think we shareholders should be too concerned and anyway as far as the tobacco's are concerned I am only looking at the dividend unless of course Imps gets an offer from somebody!

Dod

Thanks for your input Dod. I have held BATS for 12 years, and have just left them alone, apart from a small top slice on 19 Mar 2000. Other than that it has just sat there. In fact over the years it has been Imperial that I've topped up, as for some time it had been the higher yielder. I don't much like their quarterly payments though. Tobacco, a true buy and hold (in the main) stock.

Ian.

[richfool]

BATS has come back up by 1.85% so far today. I would think that shares of Reynolds would be more positively affected as their shareholders will be receiving the benefits of the deal.

I presume this means that ultimately BATS overseas earnings will increase, which shouldn't be bad in times of sterling weakness.

[kempiejon]

I hope this means that BATS earnings will increase which shouldn't be bad. I'm holding and have topped up recently.

[idpickering]

I hope this means that BATS earnings will increase which shouldn't be bad. I'm holding and have topped up recently.

I'm holding too, but am unable to top up currently as it would put me over my sector max. Currently at 10% in capital value of the HYP. To be honest though, oilies are top at 13% due to me buying some more RDSB at the yearly lows last year. This doesn't phase me as the high exposure will lower as I add elsewhere.

Ian.

[vrdiver]

I have held BATS for 12 years, and have just left them alone, apart from a small top slice on 19 Mar 2000. Other than that it has just sat there. In fact over the years it has been Imperial that I've topped up, as for some time it had been the higher yielder. I don't much like their quarterly payments though. Tobacco, a true buy and hold (in the main) stock.

Ian.

Ian, I am impressed!!! A top slice nearly 5 years before you bought them....


VRD (who can't proofread to save his wife...)

[idpickering]

I have held BATS for 12 years, and have just left them alone, apart from a small top slice on 19 Mar 2000. Other than that it has just sat there. In fact over the years it has been Imperial that I've topped up, as for some time it had been the higher yielder. I don't much like their quarterly payments though. Tobacco, a true buy and hold (in the main) stock.

Ian.

Ian, I am impressed!!! A top slice nearly 5 years before you bought them....


VRD (who can't proofread to save his wife...)

Oops! I used to be in the Special Investigation Branch in the Army and everything had to be spot on. My bad. I meant 19 Mar 2010.

Ian.