British American Tobacco may be forced to increase its offer to buy out the remaining 25 per cent of its Brazilian business after its £2.2 billion offer for the stake was opposed by some investors.
The FTSE 100-listed maker of Lucky Strike and Dunhill cigarettes said that the minority shareholders in Souza Cruz had exercised their right to seek a fresh valuation, to be conducted by Credit Suisse.
Under Brazilian regulatory procedures, BAT will be obliged to initiate its formal offer “within or above such valuation” or walk away.
BAT said that its offer for the 24.7 per cent stake was a 30 per cent premium to the average price on the São Paulo exchange in the three months before declaring its hand.
The offer,