Reynolds American rejects BAT's $47 billion takeover offer: source

Last month, British American Tobacco, which already owns 42 percent of Reynolds American, offered to buy the remaining shares of the maker of Camel and Newport cigarettes to create the world's biggest listed tobacco company. "We thought it was a possibility, so it's not too surprising," Morningstar analyst Adam Fleck said in an email. "Depending on how another offer from BATS could be structured, there's a bit of a circular argument here for the value of RAI," Fleck said.