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World Business Quick Take

■ TOBACCO
Imperial buys Altadis
Imperial Tobacco Group Plc, Europe's second-biggest cigarette maker, agreed to buy Altadis SA for 12.8 billion euros (US$18 billion) to gain the Gauloises brand and Cuban cigars. Imperial will pay 50 euros a share, 29 percent more than Altadis' price the day before the British company made its first bid in March. The offer is worth 16.2 billion euros including debt, the companies said in a statement. Imperial will raise up to ?5.4 billion (US$11.1 billion) in a rights offering to pay for the purchase. Industry takeover activity has intensified since Japan Tobacco Inc agreed in December to pay ?7.5 billion for Gallaher Group Plc.

■ SUPERMARKETS
Delta approaches Sainsbury
J Sainsbury PLC, Britain's third-largest supermarket group, said yesterday it received a potential takeover approach from Delta Two Ltd, a Qatari investment group. Financial details of the transaction were not disclosed, but the Financial Times reported that Delta Two's offer would value Sainsbury at US$24.5 billion. Delta Two announced on June 15 that it had raised its stake in the grocer to 25 percent. In April, Sainsbury fended off a private equity bid that valued the company at US$20 billion.

■ FINANCE
Thailand cuts key rate
The Bank of Thailand yesterday cut its key interest rate by 25 basis points to 3.25 percent amid growing pressure from the army-backed government to take some measures to curb the rising baht. It was the fifth consecutive rate cut this year and came amid government calls on the bank to tame the volatile baht, which has reached 10-year highs against the US dollar. Following the announcement, the baht was quoted at 33.45-46 to the US dollar, slightly down from Tuesday's close of 33.35-37. "The policy rate cut will help halt the baht's appreciation," Suchada Kirakul, an assistant central bank governor, told reporters.

■ MINING
Rio Tinto iron output soars
Anglo-Australian mining giant Rio Tinto yesterday reported record iron ore output during the second quarter, up 15 percent on the same period a year ago. The company, which last week launched a US$38.1 billion takeover bid for Canada's Alcan, said the rise in iron ore production reflected expansion to meet consumer demand. The world's second-largest miner said mined copper production fell 10 percent in the quarter, while refined copper production was up 20 percent. It said a recovery in market conditions led to a 6 percent increase in hard coking coal production, despite problems with infrastructure on Australia's east coast.


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