 British American Tobacco said on Friday a plan has been filed in a Canadian court to potentially resolve and settle its Canadian subsidiary's tobacco litigation in the country, more than five years after the unit filed for bankruptcy protection.BAT's unit Imperial Tobacco Canada (ITCAN) has been under a court supervised mediation process negotiating a possible settlement of all its outstanding tobacco litigation in Canada.The unit had sought bankruptcy protection in 2019 shortly after a Quebec court upheld a 2015 decision that awarded smokers in the Canadian province around C$15 billion ($10.88 billion) in a blow to subsidiaries of BAT, Philip Morris International and Japan Tobacco International.BAT had said it would set aside 436 million pounds ($569.68 million) in 2019, after the Quebec court upheld its decision.The court-appointed mediator's and monitor's plan of compromise and arrangement has been filed in the Ontario Superior Court of Justice, BAT said on Friday."The plan resolves all Canadian tobacco litigation and provides a full and comprehensive release to Imperial, BAT and all related entities for all tobacco claims," ITCAN said in a statement published by BAT. |
I suspect this news has been a factor in the recent fall along with what we have seen today.
I think this will work itself out next week then the rise into the next divi will start to take shape. We may not run to the levels seen last time pre the divi getting locked in but there is still value to be had here in my opinion.
Good luck all 👍🏻 |
Cigarette makers Philip Morris, British American Tobacco and Japan Tobacco will pay C$32.5 billion ($23.6 billion) to settle a long-running tobacco lawsuit in Canada, as part of a court-appointed mediator's proposed plan, Philip Morris said on Friday.The Canadian units of the three tobacco giants were dealt a massive blow in 2015 after a Quebec court awarded damages to some 100,000 smokers and ex-smokers who alleged the companies knew since the 1950s their product was causing cancer, other illnesses and failed to warn consumers adequately.After an appeal, a Quebec court in 2019 upheld the 2015 decision that awarded smokers in the Canadian province around C$15 billion, forcing the Canadian subsidiaries of all three companies to seek bankruptcy protection.The subsidiaries have been under a court-supervised mediation process negotiating a possible settlement since then.The allocation of the aggregate settlement amount between the tobacco giants remains unresolved, according to Philip Morris."Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude, allowing RBH (Rothmans, Benson & Hedges) and its stakeholders to focus on the future," Philip Morris CEO Jacek Olczak said in a statement on Friday.Rothmans, Benson & Hedges is Philip Morris' Canadian unit.British American Tobacco earlier on Friday said that the proposed plan marked a positive step towards finding a resolution. It did not provide details of the plan that Philip Morris did.BAT said its unit Imperial Tobacco Canada supported the settlement framework and structure and that the settlement would be funded by cash on hand and cash generated from the future sale of tobacco products in Canada.BAT shares fell 3% on Friday morning. |
I wonder are budget leaks contributing to todays decline? |
32.5bn Canadian dollar settlement could be the reason for the fall. I assume BAT has to paca significant chunk |
Good news...reminds me of the aftermath of the curca 2000 US court settlement. |
I thought the RNS was reasonable news. At least it brings closure. Didn't really think it was 3% fall in value news. Anyone see anything very negative in this? The share is very frustrating as it took ages to get to 30 and falls back to probably £24 again in a matter of weeks. |
Might be algorithms shorting. Battern down the hatches. |
Think theres a few bailing for IMB |
Second shoulder forming on the H&S on the chart ... could go down to 2400 easily if it does not rise again from here |
Agree but looking for low pe with high yield... |
Also not many co who pays qtrly divi apart from BP HSBA IBM DEC
There are many more Q payers than that, without even looking this up I can think of CTY, GSK, SHEL, ULVR just in the UK market.
In any event, although Q payments are marginally preferable, it makes little real difference whether quarterly or twice a year to a diversified port income investor like me as it's my total annual port income with which I'm mostly concerned. |
The RNS this morning on the CCCA looked like good news but clearly not as BATS is down 3%. Surely there was no value being given to ITCAN? What is the negative I am missing? |
Also not many co who pays qtrly divi apart from BP HSBA IBM DEC |
No choice for income seeker. Left 2600p bid. May be achieved on usa open.. |
Juicy divi paid 2 weeks today. |
Monty, these are just fictional losses unless you intend to sell.
Not sure what the driver is for the losses on BATS over the last couple of days but both IMB and BATS both have bad days and good days, sometime together and sometimes not. I am happy with my yields on both - 9+% and don’t really see much risk to this over the medium term.
I will continue to hold but may trim my IMB holding a little if my capital gains mean I can improve my yield while derailing a little. |
No good if we lost over a quarter dividend in one morning, on capital. |
Yield 8.88% |
I suppose this rns and with budget soon what is Reeves going to announce double whammy. |
Anyone buying here. Don't forget BATS bigger than Imperial.. however Imperial may be ripe for bid... |
Chopping and a changing all the time is not for me. I have positions in both and will continue to add. I am more overweight in bats so will be looking to add more imb Chasing around all over the place on daily movements is a nightmare. Calm heads. This is a serious investment for me and not a day trade |
Of course if they maintain. |
Build a position in both, keep them both for a decade, own them for nothing, forget about the CG (IMO), ongoing buybacks at both, 8 equal (from 2025) progressive dividends a year and the prospect of some MnA over time as the companies both focus on non combustibles, sooner or later economies of scale will make more sense to merge.. :o) |
And IMB yield is lower than BATS. As I'm a divi seeker I'm inclined to stay with BATS. |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
