MADRID -- Tobacco company Altadis SA said Thursday that Imperial Tobacco Group PLC has suggested making a $15.24 billion offer for the maker of Fortuna, Gitanes and Ducados cigarette brands, said the Associated Press.
Madrid-based Altadis said in a statement that its board will meet within days to discuss what it called a nonbinding approach that values Europe's fourth-largest tobacco company at 11.52 billion euros ($15.24 million U.S.).
Imperial Tobacco confirmed in a statement that it had made an approach to Altadis, but cautioned [image-nocss] that discussions are at a very early stage and there can be no certainty that this approach will lead to an offer being made.
Altadis said the approach to combine both groups is subject to due diligence, estimated to last not more than three weeks.
Shares of Altadis have posted strong gains in recent sessions on speculation that it could become a takeover target as the global tobacco industry consolidates amid wider antismoking restrictions, AP said.
The offer would be conditioned upon Altadis' board recommending the offer once it gets regulatory clearance. It would also hinge on obtaining financing, and on obtaining acceptances from 80% of Altadis' shareholders. It is also subject to the removal of voting rights limits, currently set at 10%, Altadis said.
Bristol, England-based Imperial Tobacco Group manufactures and sells a variety of cigarettes, tobaccos, rolling papers, filter tubes and cigars in more than 130 countries worldwide.
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