Tabacalera-Seita talks ongoing, no deal yet
10/05/99
Spain's Tabacalera said on Tuesday that talks with France's Seita , which could produce the world's fourth-largest tobacco group, were ongoing but no deal had yet been reached.
Negotiators were believed to be putting the finishing touches on a final merger, which would result in a combined capitalisation of 6.70 billion euros ($7.18 billion).
But some analysts speculated that the delay could mean that the deal would still take more time to complete.
Tabacalera said its board met late on Monday to study the situation after both companies disclosed that their negotiations had moved to an advanced stage.
``Current negotiations with the company Seita were discussed, without any agreement being adopted regarding the subject,'' Tabacalera told the stock market commission CNMV.
At 0940 GMT, shares in the Spanish group were slightly lower, shedding 1.29 percent to 19.10 euros, while Seita was down 2.36 percent to 62 euros.
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