R J Reynolds Tobacco Holdings

R.J. Reynolds Tobacco Co., the No. 2 U.S. cigarette maker, said that it has spun off its Targacept Inc. subsidiary, which develops nicotine-related pharmaceuticals, into a privately held company. Targacept was formed by R.J. Reynolds, a wholly owned subsidiary of R.J. Reynolds Tobacco Holdings Inc., in 1997. R.J. Reynolds, which contributed a portfolio of patents and intellectual property to Targacept, said it will own 43% of the newly formed company on a fully diluted basis.

R.J. Reynolds Tobacco Co., the No. 2 U.S. cigarette maker, said that it has spun off its Targacept Inc. subsidiary, which develops nicotine-related pharmaceuticals, into a privately held company. Targacept was formed by R.J. Reynolds, a wholly owned subsidiary of R.J. Reynolds Tobacco Holdings Inc., in 1997. R.J. Reynolds, which contributed a portfolio of patents and intellectual property to Targacept, said it will own 43% of the newly formed company on a fully diluted basis.

A U.S. District Court judge has dismissed a $1-billion Canadian lawsuit against RJ Reynolds Tobacco Holdings that accused the tobacco giant of cigarette smuggling. Judge Thomas McAvoy said the lawsuit ran afoul of a 1700s English common law rule adopted by the United States that prohibits its courts from being used to collect another country's revenue.

A U.S. District Court judge has dismissed a $1-billion Canadian lawsuit against RJ Reynolds Tobacco Holdings that accused the tobacco giant of cigarette smuggling. Judge Thomas McAvoy said the lawsuit ran afoul of a 1700s English common law rule adopted by the United States that prohibits its courts from being used to collect another country's revenue.

* Flextronics International Ltd., the biggest maker of cellphones and computers for other companies, agreed to buy 55% of India-based Hughes Software Systems Ltd. for $226 million. * R.J. Reynolds Tobacco Holdings Inc. agreed to delay its proposed $3-billion buyout of No. 3 Brown & Williamson Tobacco to give antitrust enforcers an additional 13 days to review the acquisition.

R.J. Reynolds Tobacco Holdings Inc. will get a California Supreme Court review of a $14.8-million fine the company received for distributing tobacco at events where children were present. The California Supreme Court agreed to decide whether state Atty. Gen. Bill Lockyer exceeded his authority with the fine for violating a state law banning tobacco giveaways on public grounds where minors might be in attendance.

The European Union said it has appealed a U.S. court ruling dismissing a lawsuit against tobacco giants Philip Morris Cos. and R.J. Reynolds Tobacco Holdings Inc. in which EU lawyers claimed the companies sponsored cigarette smuggling in Europe. Philip Morris attorney Steven Rissman denied the allegations and said the company expects the dismissal to stand.

The U.S. Supreme Court refused to consider arguments that the $206-billion nationwide tobacco settlement violates antitrust laws by letting cigarette makers jack up prices in concert. The justices, without comment, turned aside an appeal by two wholesalers opposed to the 1998 accord between tobacco companies and 46 states. The wholesalers sought to revive a suit against Philip Morris Cos., R.J. Reynolds Tobacco Holdings Inc. and British American Tobacco's Brown & Williamson Tobacco Corp.

R.J. Reynolds Tobacco Holdings Inc. said its third-quarter earnings were up, but the maker of Winston, Camel and Doral cigarettes lowered its earnings outlook for the year for the second time in as many months. RJR posted earnings of $139 million, or $1.56 a share, up from $119 million, or $1.22 a share, a year ago. Sales declined 3% to $1.59 billion. The company lowered its earnings outlook for 2002 to $6.05 to $6.40 a share. Shares of RJR rose 37 cents to $42.90 on the NYSE.

The European Commission defeated three tobacco companies in a top European court, rebuffing an attempt to derail its smuggling and money-laundering charges against them. "These cigarette manufacturers cannot prevent the [European] Community from continuing legal proceedings brought by it before the Courts in the United States," the Court of First Instance said in a statement. Philip Morris Cos., which along with R.J. Reynolds Tobacco Holdings Inc. and Japan Tobacco Inc.

Several hundred thousand tobacco growers reached a settlement with most defendants in a price-fixing case that will boost growers' profits by $1 billion over time, their lawyers said. The settlement received preliminary court approval, said Philip Morris USA, one of the defendants. The suit alleged cigarette makers and tobacco brokers violated antitrust laws by bid rigging at tobacco auctions since before 1996. R.J. Reynolds Tobacco Holdings Inc.

Canada filed a civil lawsuit against several tobacco companies to collect "substantial" revenue Ottawa says it lost because of cigarette smuggling in the 1990s. The civil suit names R.J. Reynolds Tobacco Holdings Inc. and Japan Tobacco Inc., along with affiliates including JTI-Macdonald. Canadian authorities alleged in February that JTI-Macdonald and three U.S. concerns evaded $870 million in taxes by smuggling Canadian tobacco products from the United States back into Canada from 1991 to 1996.