Imperial Tobacco glows with sales rise prompting deal talk

A match was lit under Imperial Tobacco shares today as the tobacco group predicted a rise in sales and market analysts suggested it could become the target of a bid.

The company reckons that revenues will rise by around 3% this year, from last year's total of $26.5 billion (£17 billion).

In a trading statement today ahead of full-year results in November, Imps said: "Our global strategic cigarette brands continue to perform well with Davidoff and West volumes growing and Gauloises Blondes' performance improving in the second half."

Shares gained 27p to 1920p — in an otherwise falling market — valuing the business at £19.6 billion.

Martin Deboo at Investec rates the stock as a hold. He says that a "take out" of Imperial cannot be ruled out at the present price.

Another Imps brand is Lambert & Butler. Alison Cooper, the recently anointed chief executive, said: "I am pleased with our financial delivery given the challenging environment."