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As long as companies in the "smokes" business are not being sued by dead people who used their products, it is a hell of a business. Operating margins can run above 20% and cash flow is stupendous.
All of that makes Altria’s (MO) decision to delay its buyout of UST (UST) more troubling. The credit markets have been mauled to the extent that the banks helping finance the deal have suggested it be delayed until early next year. The MO press release on the acquisition said "While Altria currently has fully committed financing to complete the transaction, Altria’s lenders advised that it would be preferable to close the transaction in 2009."
