Bat Drops On Litigation Report

BAT shares touched a low of 415p in morning trade before recouping some losses to 471-1/2p, down 10-1/2p or 2.5 per cent on the day. Over 5.6 million shares had changed hands and the stock counted among the top six most-traded issues in London.

The broader market was down 0.3 per cent.

The (Channel Four) Dispatches programme dragged up the litigation actions and that unnerved people, one dealer said.

Traders said the programme, broadcast on Thursday evening on British television, contained little new about the actions.

But it made a good job of showing the coordinated action taken by the lawyers and hinted that their case was getting better, one trader said.

 

The documentary highlighted a group of lawyers who joined forces to coordinate a national campaign against U.S. tobacco companies and the subsidiaries of British firms.

It showed lawyers combing a storage debot for tobacco company documents in Guildford, south England, and quoted one as saying promising material had been unearthed.

Dealers said sterlings strength had also worried investors.