Blue Cross to oppose BAT merger
Wednesday 26 August 1998
Blue Cross, which is pursuing BAT Industries' US cigarette producer, Brown & Williamson, for damages, told BAT's solicitors Herbert Smith it is sending representatives to oppose the deal when it comes up for approval in the High Court next Wednesday.
The sanction of the Court is needed before BAT can go ahead with plans to split off its financial services arm and merge it with the Swiss insurer.
Blue Cross and Blue Shield, one of the leading US healthcare groups, fears the deal will complicate its attempts to secure compensation for policyholders suffering from smoking-related diseases. Fears of a large hit from the projected US legal wrangle over tobacco liabilities has been a significant drag on BAT's shares.
BAT said yesterday it had been advised that the chances of the efforts to derail the deal succeeding were slim. BAT's solicitors have told the company that under English law the deal could only be stopped by a creditor and as Blue Cross has yet to win any litigation against Brown & Williamson it is not technically a creditor at present.
BAT Industries is injecting its financial services operations, which include Eagle Star and Allied Dunbar in the UK and Farmers in the US, into Zurich Financial Services, which will be 57 per cent owned by BAT shareholders.
BAT and Zurich yesterday said that dealings in BAT Industries and Zurich Insurance would be suspended on the close of trade next Thursday. Shares in Allied Zurich, the UK-quoted vehicle for the financial services group, and British American Tobacco, BAT's tobacco arm, would start in London the following Tuesday.
- 1 Students heading off to 'charity challenge' grounded at Gatwick after travel firm goes bust
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Like Jennifer Aniston, I am no less of a woman because I am childless
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Californian drought is so severe it's 'causing the ground to move'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...
£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...