Universal Gets Tobacco Fine

Universal (UVV) unit Deltafina was fined $36 million in a European Union tobacco antitrust case. The Richmond, Va., company pledged to appeal.

Universal said the European Commission Competition Directorate imposed fines on four Italian tobacco processors totaling $67 million. The EU charges the processors broke European Union antitrust law in connection with the purchase and processing of tobacco in the Italian raw tobacco market.

Universal said it "was surprised by the Commission's decision, as it does not believe that the decision can be reconciled with the Commission's Statement of Objections and the facts."

Universal said Deltafina had received conditional immunity in March 2002 after telling the commission of activities in the Italian leaf markets that were the basis of an investigation. The Commission said in December 2004 it would revoke Deltafina's immunity, citing its April 2002 disclosure that it had applied for immunity. Universal said the commission didn't make any confidentiality demands and that in previous talks the commission didn't indicate disclosure would affect Deltafina's immunity.

On Tuesday, Universal shares fell 78 cents to $38.86.

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