09:51, October 21 242 0

2016-10-21 09:51:14
Cravath and HSF lead as BAT offers to buy-out rival for $47bn

Cravath Swaine & Moore and Herbert Smith Freehills (HSF) are advising FTSE 100 giant British American Tobacco (BAT) on its $47bn (£38.4bn) approach for Reynolds American.

BAT already owns 42 per cent of Reynolds American, which sells cigarette brands such as Lucky Strike and Camel.

The offer to buy the remaining 58 per cent of the company would see the two merge in a deal worth approximately $47bn. Around $20bn ($16.4bn) will be paid in cash and $27bn ($22bn) will be in BAT shares.

Cravath advised on aspects of US law with a team led by corporate partners Philip Gelston, David Perkins, Ting Chen and Alyssa Caples.

BAT’s longstanding UK advisers HSF worked on aspects of English law, led by senior partner James Palmer, corporate partners Gillian Fairfield and Alex Kay, and tax head Isaac Zailer.

Director Bob Casey and M&A legal head Craig Harris led in-house for BAT.

The BAT offer is an approach, with Reynolds American’s lawyers not yet known.

HSF had been running the plain packaging judicial review for BAT in the UK.

It claimed, along with Japan Tobacco International and Philip Morris International, that the UK Government’s changes to cigarette packaging breached intellectually property laws. However, the case was dismissed in May this year.

BAT said it would appeal the decision, with the hearing on leave to appeal understood to be happening today (21 October).