Altria to spin off Philip Morris International

0 Comments | AFP, August, 2007

NEW YORK (AFP) — US tobacco giant Altria said Wednesday its board agreed to spin off its Philip Morris International division, continuing a restructuring begun earlier this year.

"Today's announcement underscores our sustained and determined commitment to create enduring long-term shareholder value," said Louis Camilleri, chairman and chief executive of Altria.

"I am convinced that this transaction will enhance growth at both Altria and Philip Morris International."

The Wall Street Journal reported earlier the new company to be spun off would be based in Switzerland, and thus free from legal and public relations problem in the United States over tobacco marketing.

The company, maker of Marlboro cigarettes, said it will be in a position to finalize...