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BUZZ-Imperial Tobacco: Reynolds/Lorillard deal in focus

** Imperial Tobacco (LSE: IMT.L - news) (IMT) retreats further from a record hit earlier this mth in robust volume amid jitters around proposed Reynolds/Lorillard (NYSE: LO - news) merger

** IMT, which stands to acquire brands sold by two groups, up some 13 pct since deal announced July (vs flat showing from rival British American Tobacco (LSE: BATS.L - news) (BAT) )

** Jefferies says (in note published Tues am) deal c.10 pct accretive to IMT, about half of which has been baked into consensus & reckon IMT might fall c.5 pct if deal collapses

** According to NYPost report FTC recommending a lawsuit to block merger - Source link: (http://bit.ly/1xuMHLZ)

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** Regulators scheduled to meet Tues on a merger vote sources believe is Reynolds case, NYPost says

** Imperial Tobacco, down 2.5 pct, top FTSE 100 faller & 3rd most actively traded stock on index

** BAT (which owns 42 pct of Reynolds), down 1.4 pct (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)