Lorillard Hits Record on Reynolds Takeover Speculation

Lorillard Inc. climbed to a record high yesterday on renewed speculation that Reynolds American Inc., the second-largest seller of cigarettes in the U.S., will make a bid for its smaller rival.

The shares jumped 10 percent to $62.63 yesterday after Reuters reported that Reynolds is in advanced talks to acquire Lorillard. The deal could take the form of a three-way transaction involving British American Tobacco Plc, which would take a “major role” in backing the merger, Reuters said.