(Reuters) - U.S. cigarette maker Reynolds American Inc RAI.N said it has formed a committee of independent directors, not designated by British American Tobacco Plc (BATS.L), to evaluate BAT’s takeover offer.
The committee has retained Weil, Gotshal & Manges LLP and Moore & Van Allen PLC as its legal counsel, and Goldman, Sachs & Co as its financial adviser to help evaluate the proposal, Reynolds American said. (bit.ly/2fobo9M)
The company retained Jones Day as its legal counsel and J.P. Morgan Securities LLC and Lazard as financial advisers, it said.
The tobacco company also cancelled its investor day, which had been scheduled for Nov. 14, 2016.
Earlier in the month, BAT had offered to buy Reynolds American in a $47 billion (38 billion pound) takeover that would create the world’s biggest listed tobacco company with brands including Newport, Lucky Strike and Pall Mall.
Analysts have said they expect the deal would be approved but that Reynolds would receive a higher price.
The deal is expected to spark further consolidation, such as a reunification of Philip Morris with Altria, analysts said. It would also put further pressure on smaller players Imperial Brands Plc (IMB.L) and Japan Tobacco International (2914.T) to do deals of their own.
Reporting by Arathy S Nair in Bengaluru and Jilian Mincer in New York; Editing by Savio D'Souza and Sandra Maler