Tobacco Holders Expect Deal, Survey Reports

An 83% majority of tobacco shareholders expect Congress to enact into law next year a settlement of health-related lawsuits against cigarette companies, according to a survey by Sanford C. Bernstein & Co. analyst Gary Black. The investment research firm surveyed 62 institutional investors in Philip Morris Cos. and RJR Nabisco Holdings Corp., the two largest U.S. tobacco companies. Results showed that about 10% said that cigarette makers should walk away from the accord. Cigarette pack prices may rise by as much as $1 under a settlement that provides the industry with some protection from legal liability, according to the average response of survey participants. That would be an increase from about 70 cents a pack required under a proposed $368.5-billion settlement reached June 20.