UST shareholders OK acquisition by Altria

By Lisa Kerner

Charlotte, N.C., Dec. 4 - UST Inc. shareholders approved the company's acquisition by Altria Group, Inc. at a special meeting on Thursday.

The transaction is expected to close during the first full week of January and no later than Jan. 7, a UST news release said.

In September, Altria agreed to acquire all outstanding shares of UST for $69.50 each in a transaction valued at about $11.7 billion, including the assumption of about $1.3 billion of debt.

As previously reported, the agreement was amended on Oct. 2 to extend the closing date and increase the reverse termination fee payable by Altria to $300 million from $200 million under certain circumstances.

UST is a holding company for U.S. Smokeless Tobacco Co., a producer and marketer of moist smokeless tobacco products. The company is located in Stamford, Conn.

Altria, located in Richmond, Va., manufactures and sells cigarettes and other tobacco products. It is the parent company of Philip Morris USA.

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