Hanson shares jumped 6% today as investors bought into speculation that he building materials group had received and subsequently rejected a takeover approach.

California has become the first US state to declare passive smoke a toxic air pollutant, putting tobacco fumes in the same category as diesel exhaust, arsenic and benzene because of its link to breast cancer.

British American Tobacco today said profits had risen by 8.5% on the back of good profit growth across most of its businesses.

British American Tobacco chairman Jan du Plessis has hit out at bans on smoking in public places, such as those introduced in Ireland and New York as BAT released news of modest half-year profits today.

British American Tobacco and RJ Reynolds Tobacco have agreed to merge their US tobacco businesses, uniting the nation’s second and third largest tobacco companies in an effort to blunt the attacks of sagging sales and cheaper brands.