The City was stubbing out Big Tobacco yesterday on fears that a landmark legal ruling in a Canadian court could set a precedent for cases across the globe.
British American Tobacco and its smaller London-listed rival Imperial Tobacco were among the biggest fallers as the investors reacted to the court ordering three companies to pay £8.2 billion to two groups of smokers who claimed they had failed to warn them properly about the risks of smoking.
BAT, whose subsidiary has a £5.5 billion bill, about a year’s worth of profits, said there were strong legal grounds to appeal against the judgment and to challenge an order requiring a hefty payout from the defendants in the event of an appeal. Its shares fell 86½p to £35.06.