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HAIL BRITANNIA?!? Print E-mail
HAIL BRITANNIA?!?Financial rumor mill has Britain’s Imperial Tobacco looking to acquire Spanish giant Altadis

Los Angeles, December 21 – Speculation is running rampant in British financial markets that Imperial Tobacco will make a bid for the Spanish tobacco giant Altadis, maker of popular European cigarette brands Gauloises and Gitanes and half-owner of Habanos, S.A.

Imperial is already the fourth-largest tobacco-products company in the world behind Altria (U.S.), British-American Tobacco and Japan Tobacco. It’s market capitalization is about a third larger than Altadis and could make Imperial more secure as a stand-alone company and not a candidate for takeover itself!

Altadis statements over the last week have vehemently denied that there are any talks underway concerning a takeover by Imperial, but reaction in the financial markets has been good, with the shares of both companies rising on speculative hopes of a merger or takeover.

If concluded, such a move would ultimately place significant Cuban cigar assets in British hands, similar to the circumstances of about a century ago. When the U.S. embargo is finally lifted, the position of the British to introduce Cuban cigars into the United States might be significantly easier than that of a Spanish-French company created only recently, in 1999.

Altadis’ 50-percent share in Habanos and its current trademark holdings in the U.S. would allow it to possibly introduce eight existing Cuban brands without the fight certain to befall other brands whose trademarks are held by U.S. companies. Altadis currently controls U.S. trademarks for Gispert, H. Upmann, Juan Lopez, Montecristo, Por Larranaga, Romeo y Julieta, Saint Luis Rey and Trinidad.

Imperial is best known for its Lambert & Butler and Richmond brand cigarettes, hot sellers in Britain, as well as Rizla rolling papers. Its interest in international expansion is interesting in view of the new restriction on smoking advertising and promotion in Britain and across Europe thanks to the newly-approved Framework Convention on Tobacco Control, a typically meddlesome U.N. initiative which severely limits advertising and promotion spending by tobacco companies.

But then again, Imperial may not care. Its response to the newest advertising controls in Britain? In a statement, Imperial decried the ban on freedom-of-speech grounds, but also stated “Advertising does not affect sales. We saw that when the first advertising ban [in Britain] was introduced in 2003.”

Steals and Deals:
We found some nice opportunities for cigar lovers to indulge themselves from Atlantic Cigar and Cigars International:

Atlantic Cigar:
Our low-price leader has some excellent values on two high-profile, popular brands:

> Camacho Corojo, our top-ranked full-bodied cigar, is now available at newly discounted prices, even lower than their already-modest levels from November. Boxes of 20 are now offered from $59.50 for the Petit (5 1/2 inches by 42 ring) up to just $89.25 for either the Figurado (7 x 54) or the Gigante (6 x 54). Our favorites in the line are also discounted: the Chuchill (7 x 48) is now just $84.00, the Toro (6 x 50) is $78.00 and the Monarca (5 x 50) is $74.25.

> Even better is value is the Honduran Sancho Panza line, offered in boxes of 20 for just (get this!) $40.25 to $56.95 the box in the natural line (old prices $46.00 to $58.95). The Double Maduro line is even better, at box prices of just $37.50 for the La Mancha (5 1/2 x 44) up to the Escudero at a fat 7 1/4 inches by 50 ring, only $56.25. The best value is probably the short Quixote (4 1/2 x 50), down to $39.38 from $42.00 previously.

Cigars International:
We can’t say it’s really a steal or a deal, but CI is now offering both the 2003 and 2004 editions of the Carlos Torano Tribute series. These are beautifully-made cigars, made in only three sizes – Churchill (7 x 50), Robusto (5 x 50) and Torpedo (6 1/8 x 52) – and offered in boxes of 22. All offer a rich, deep taste with comforting flavors of wood and toast. Not cheap at $179-219 the box, but they’re hard to find and worth enjoying when you do.

New Middle-East Meccas for Havana Cigars:
OK, you’re on the road in the Middle East. Staying away from Iraq, Syria and Lebanon, you find yourself in the United Arab Emirates, wishing you could enjoy the winter with a gracious beverage and a Cuban cigar.

You’re in luck.

New franchises of Cuba’s “Casa del Habano” have opened in Dubai, Abu Dhabi and in Muscat, Oman. There are now four “Casas” in Dubai and one each in Abu Dhabi and Oman.

The franchise owner is Baqer Mohebi Establishment (BME), which not only owns and operates the six above-mentioned stores, but also now a new Casa in Tehran, Iran (!) in the Isteghlal Hotel & Towers Shopping Centre.

Now I know where I’m going to celebrate when the mullahs come tumbling down!
~ Rich Perelman
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Did you know?

Although rarely seen today, coin-operated cigar dispensers have been around since at least 1893.