Reemtsma bidders discuss sale

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German tobacco manufacturer Reemtsma meets with interested parties today to discuss how a deal would be structured, according to a report in the UK Financial Times.

Reemtsma was put up for sale by parent coffee and catering group Tchibo in November and has drawn interest from most major tobacco companies. Those believed to be in discussion with Reemtsma today are Gallaher, Imperial Tobacco, Altadis and Japan Tobacco International.

Until recently Gallaher was not expected to compete in the bidding due to its recent purchase of Austria Tabak. Philip Morris and British American Tobacco are prevented from bidding by anti-trust regulations.

Reemtsma is expected to fetch around £4bn ($5.72bn), although it is unlikely that a decision as to the final buyer will be reached today, due to the complex ownership structure of some of Reemtsma's brands.

• Reemtsma is the world's fourth-largest cigarette manufacturer, and achieved sales of more than ($2.28bn) last year, with 75% of that coming from international sales. Its leading brands in duty-free are West and Davidoff.