UK & South Africa: SABMiller separation from Altria unlikely in the next 6 months

Credit Suisse believes a sale by Altria of its 28% stake in SABMiller is "unlikely in the next 6 months," Dow Jones Newswires communicated July 07.

July 06, the Engle tobacco lawsuit concluded in favor of Altria. The lawsuit was seen as the last obstacle to a break-up. Experts estimate Altria may wait for the emerging markets shake out-led de-rating to correct before selling the stake, given the large capital gains tax bill the sale would incur. Thus Credit Suisse sees any short-term weakness as a good entry point for long-term minded investors. Rates for SABMiller outperform with 1,200p target. Shares closed July 06 at 955.75p.

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