Independence could empower Lorillard - The Business Journal of the Greater Triad Area:

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The move could allow the nation's third-larges t cigarette maker to take on more debt to pursuew acquisitions and joint ventures to better compete in achanging market. Loews, the New York-based has sought to divest itself of Lorillardrsince 2002, when it created the Carolina Group trackinhg stock tied to Lorillard's On Dec. 17, Loews announced it would totallyu spinout Lorillard. The company announced May 9 it would swap the more than 65 millioh of its shares for shares of the newlgy independent tobacco company throughJune 9. The next day Loews will exchangs more than 108 million shares of Carolinaa Group for sharesof Lorillard.
Stevej McSorley, an analyst with Rochdale Securitiews in New York who has closely watchede theLoews move, said Lorillard would be able to take on more debt to go aftedr acquisitions. "They will be free to lever up theidr balance sheetand expand, free to pursude their own strategy," he said. "There was some concerhn that their goals did not jibe with the capitaol structureat Loews." In a filing with the Securities and Exchangre Commission, Lorillard said it is not in active talks with any thirx party regarding an acquisition.
Ronald Milstein, a spokesmab for Lorillard, said he could not commentg beyond the filing until the exchange offer is McSorley said other tobacco companies have pursued acquisitionzs as customers move away from cigarettes in favor ofsmokelesas products. In the past year, Lorillard, Phillip Morris USA and Winston-Salem-bases Reynolds American Inc., have all boughrt smokeless tobacco makers and begum test marketing products called atea bag-like pouch placed between the cheeks and Lorillard's 2007 sales of $3.97 billion was up 5.7 percenf from the previous year, and it reportedf a 10 percent overall markegt share.
Lorillard, which makes all its product s atits 942,000-square-foot facility in Greensboro, will keep its headquarters in the Gate Arcadia Resources Inc. Address: 9229 Delegates Row, IN 46240 Local contact: Jane Cooke, generap manager