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Lorillard declares 3-for-1 stock split

GREENSBORO, N.C. (AP) -- Lorillard Inc., the nation's third-biggest cigarette company, said Tuesday that its board has declared a three-for-one split of the company's common stock.

The Greensboro, N.C.-based maker of Newport, Kent and Maverick cigarettes said shareholders of record on Dec. 14 will receive two additional shares for each share they own.

The split will be payable as a 200 percent stock dividend. The additional common shares will be distributed beginning Jan. 15.

Its shares closed Monday at $112.59 and have traded at between $106.64 and $141.07 in the last 52 weeks.

"Since becoming an independent publicly traded company in 2008, Lorillard has consistently grown its business and financial results, and those results have largely been reflected by a higher stock price," CEO Murray Kessler said in a news release.

Last month, Lorillard said its net income rose 6 percent in the third quarter, as higher prices helped offset a decline in the number of cigarettes sold. Revenue excluding excises taxes rose 4.5 percent.

Lorillard, the oldest continuously operating U.S. tobacco company, spun off from Loews Corp. in 2008.