Reynolds American rejects BAT's $47 billion buyout offer - source

(Reuters) - U.S. cigarette maker Reynolds American Inc is seeking a higher price from British American Tobacco Plc after rejecting a $47 billion buyout offer as too low, a source familiar with the situation told Reuters.

Last month, British American Tobacco, which already owns 42 percent of Reynolds American, offered to buy the remaining shares of the maker of Camel and Newport cigarettes to create the world's biggest listed tobacco company.

Reynolds American had a market capitalisation of about $76 billion as of Monday's close.

Reynolds American was not immediately available to comment. BAT declined to comment.

The companies are still in talks and BAT is willing to increase the price slightly, Bloomberg said, citing people familiar with the matter. (http://bloom.bg/2fQxNIu)

 

Bloomberg was the first to report on Reynolds' rejection.

(Reporting by Subrat Patnaik in Bengaluru and Lauren Hirsch in New York; Editing by Anil D'Silva)