LONDON (Thomson Financial) - Imperial Tobacco Group PLC this afternoon declined to comment on the move by CVC and PAI Partners to table an initial 50 eur a share offer for Spanish cigarettes company Altadis SA.
The move by the two risk capital firms has put Imperial Tobacco's own 47 eur a share bid for Alatdis in doubt. The Spanish group, which manufactures the Gauloises and Fortuna brands, has rebuffed two proposals from Imperial Tobacco, the world's fourth biggest cigarette maker, at 45 and 47 eur per share. The Spanish group has, so far, refused to provide any of the detailed financial information that Imperial needs to begin due diligence. It is understood Alatdis has been holding out for 50 eur a share before opening it books to potential bidders.
In a statement today, Altadis said the 50 eur a share offer from CVC and PAI was conditional on the board's approval.
An Imperial Tobacco spokesman told Thomson Financial News it was 'too early' to make any comment as to Imperial's next move. 'It is unlikely that the group will make any further statement today as the senior management are currently doing investor presentations following our results,' he said.
Imperial Tobacco recently said it was making 'some progress' with Altadis. 'Lines of communication are open,' Imperial's CEO Gareth Davis told reporters on May 1, the day the group reported its interim figures
He added that Imperial was still pursuing 'friendly' talks to achieve a recommended bid.
But he hinted then that Imperial would not wait around for Altadis to play ball for much longer.
'This is an important deal ... but there are other opportunities out there. We won't be around forever on this one,' he told reporters on a conference call. tf.TFN-Europe_newsdesk@thomson.com ml/jag COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.