pounds 2.2bn value placed on Gallaher float

IN BRIEF

Britain's leading cigarette manufacturer, Gallaher, will float this month with a market value of about pounds 2.2bn, putting the Silk Cut and Benson & Hedges business on the brink of the FTSE100 index. Details of Gallaher's demerger from American Brands will emerge on Thursday when the company's listing particulars are to be issued.

American Brands, Gallaher's parent for the past 25 years, received clearance from the US tax authorities last week for the split, which should mean the shares start trading in London on 30 May. The stock will also have a New York ADR listing. Gallaher is Britain's biggest cigarette maker with a 39 per cent share of the market.