Loews Spins Off Cig Business

Loews (LTR Quote) has decided to spin off its cigarette-making subsidiary.

The New York-based conglomerate on Monday said most shares of that unit -- called Lorillard -- will go to current holders of Carolina Group (CG Quote), a class of Loews stock established in 2002 essentially to track Lorillard's performance. Thereafter, Lorillard will become its own publicly traded company.

Lorillard makes and sells cigarettes under such brands as Newport and Kent. Apart from tobacco, Loews also deals in such varying businesses as casualty insurance, oil-and-gas drilling, hotels and wristwatches. ...