Tabacalera gains after Cuban cigar deal
12/10/99
MADRID, Dec 10 (Reuters) - Shares in Spanish tobacco firm Tabacalera climbed 2.7 percent in a falling market on Friday after it and French partner Seita announced the purchase of half of Cuban state cigar-maker Corporacion Habanos.
By 1200 GMT the stock had risen to 15.89 euros while the Ibex index had slipped 1.1 percent.
``It's a wonderful investment in the medium-term because the U.S. market will eventually open to Cuban products,'' said Jose Leopoldo Lopez, analyst at Urquijo Bolsa.
Corporacion Habanos' brands include the luxury Cohiba and Montecristo cigars.
``The business brings not much sales volume but a lot of prestige and that will limit what competitors can do,'' Lopez added.
Tabacalera is completing a merger with Seita to create Altadis and shares in the new company began trading in Paris on Friday, rising 2.22 percent to 16.15 euros.
Cigarettes
