Reynolds American Inc. said it would buy rival Lorillard Inc. for about $25 billion, merging two of the world's biggest cigarette makers amid a slowdown in
sales. Reynolds, whose brands include Camel and Pall Mall, offered $68.88 per Lorillard share, representing a premium of 2.5 percent to Lorillard's Monday closing. Lorillard's shares, which have risen
about 37 percent since reports in February of a possible deal, were down 5.5 percent at $63.50 before the bell on Tuesday.
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