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Loews Faces $325.2 Million in Pretax Charges

November 28, 1998|Bloomberg News

Loews Corp., the No. 3 U.S. cigarette maker, said it will take pretax charges of $325.2 million in the fourth quarter for costs of the settlement ending 46 states' health-care claims against big cigarette makers. The New York-based company will take a $175.2-million charge for its share of the $206-billion plan's initial payment and a $150-million charge for related costs, such as the expense of complying with new marketing rules. Tobacco companies' initial payments under the 26-year settlement are based on their market valuation, while annual payments will be based on cigarette market share. Earlier this week, No. 1 U.S. cigarette maker Philip Morris Cos. and No. 2 RJR Nabisco Holdings Corp. also said they would take similar charges. Loews shares fell $2.13 to close at $101.88 on the NYSE.

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