NEW YORK (TheStreet) -- Shares of Lorillard (LO - Get Report) are up 5.98% to $66.86 in pre-market trade as Reynolds American (RAI - Get Report) is reportedly closer to purchasing the company and a deal could be announced next week, and with the backing of British American Tobacco (BTI), sources told Bloomberg.
London-based BAT owns 42% of Reynolds and would have to approve any merger.
Shares of Reynolds are up 2.73% to $63.96 in pre-market trade.
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