Chadbourne & Parke Advises Gallaher On Major Acquisition in Russia.Business Editors NEW YORK--(BUSINESS WIRE)--June 23, 2000 Gallaher Group Plc today announced its proposed acquisition of Liggett-Ducat for $390.5 million in cash including the assumption of $56.4 million debt from the Vector Group (formerly known as the Brooke Group). Once approved by the Russian regulatory authorities, the transaction will be the largest acquisition in Russia by a foreign company outside the oil and gas industry. Chadbourne & Parke partners Laura Brank brank n. A device consisting of a metal frame for the head and a bit to restrain the tongue, formerly used to punish scolds. Usually used in the plural. and Robert Colby led Gallaher's legal team with assistance on UK matters from Simmons & Simmons. The acquisition includes a state-of-the-art cigarette factory in Moscow and a 17% share in the fourth largest cigarette market in the world. Liggett-Ducat's strong distribution network and well-established brands in a profitable price range make the company a perfect addition to Gallaher's growing international portfolio. Gallaher expects enhanced earnings in the first full financial year following the acquisition. Laura Brank, a Moscow-based Corporate Finance partner, and Robert Colby, a New York-based Corporate Transactions partner, were lead counsel in the negotiations between Gallaher and Liggett-Ducat. "This is a very good move for Gallaher," said Ms. Brank. "Russia's emerging market makes for an interesting setting for major transactions like this one -- we are already beginning to see more and more investors seeking stakes in this large global market." Chadbourne's representation of Gallaher ensured that the acquisition complied with Russian antitrust laws antitrust laws n. acts adopted by Congress to outlaw or restrict business practices considered to be monopolistic or which restrain interstate commerce. The Sherman Antitrust Act of 1890 declared illegal "every contract, combination.... and environmental laws. They also handled registration procedures and conducted extensive due diligence on Liggett-Ducat and its holdings. An international law firm headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Chadbourne & Parke LLP LLP - Lower Layer Protocol provides a full range of legal services including corporate finance, project finance, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , intellectual property, domestic and international tax, insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. , environmental, real estate, bankruptcy, employment law and ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). , trust and estates, and government contract matters. The Firm has offices in Hong Kong, New York, Los Angeles, Washington, D.C., Moscow, an affiliated multinational partnership, Chadbourne & Parke, in London, and affiliations in Australia, Azerbaijan, Belarus, Japan, Kazakhstan and the Ukraine. |
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