Lorillard is in play to either be bought or is looking to buy someone
Tobacco companies being discussed over cNBC about being looked at to be bought. VGR has been in play for about two weeks. If you look at VGR for a 3 year chart you will see action started a couple of weeks ago.
VGR took off when the real estate industry in New York (billionaires) realized that VGR bought Douglas Elliman Real Estate Brokerage. Some of the wealthiest people on the planet started buying VGR for the first time. The dividend was good and the growth prospects (e-cigs) even better.
VGR was quite clever in its purchase of Douglas Elliman. It brought in a whole new class of investor.
As for LO. They are the leader in E-Cigs. Reynolds had missed the boat and realizes that MO/PM will be quite competitive in E-Cigs soon. So Reynolds needs to buy LO. No one knows if they can pull it off - but, there is little doubt that Reynolds needs LO. Everyone understands that.