Reynolds American, Inc. and Lorillard Inc. Confirm Acquisition Talks (RAI, LO)

On Friday morning, Lorillard Inc. (LO) and Reynolds American (RAI) confirmed that the companies have been discussing Reynolds American’s potential acquisition of Lorillard.

In addition to the possible Lorillard takeover, the two companies also announced that they have been in talks with British American Tobacco (BTI) regarding the sale of brands and assets that are currently owned by LO and RAI. LO and RAI both stated that no official deal has been reached.

RAI stock was up 89 cents, or 1.45%, in pre-market trading. YTD, the company’s stock is up 26.36%.

LO stock was up $2.82, or 4.47%, in pre-market trading. YTD, the stock is up 26.21%.