City File: Bouncing back

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BULLISH words from BAT's chairman, Sir Patrick Sheehy, at the announcement of the tobacco-to-insurance group's first- quarter results, pushed the shares up 24p two months ago. Since then, they have been knocked back by fears about the impact of a US Supreme Court ruling that US health warnings do not protect manufacturers from personal injury claims. But interim figures, due shortly, should send them up again. Eagle Star, the BAT subsidiary, is thought to have made a strong recovery and a profits rise of 60 per cent to pounds 660m is possible.