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Takeover Rumors Continue to Boost American Brands

December 28, 1988|From Reuters

NEW YORK — American Brands Inc. stock rose in heavy trading Tuesday, extending its huge gains from Friday on rumors that Anglo-Dutch consumer group Unilever or another suitor may bid for the tobacco and office products company.

American Brands ended the day up $1.75 at $69.50 a share on the New York Stock Exchange. The stock soared $10.125 to $67.75 last Friday on speculation that Unilever, the consumer products company that owns Lever Brothers, was considering a $90-a-share bid.

Such an offer would value American Brands at $8.4 billion, making it the fifth-largest corporate acquisition in the United States. The purchase of American Brands, which had sales of $9.2 billion last year, also would restore Unilever as the world's largest consumer products firm, with $39 billion in revenue.

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