Benson & Hedges and Silk Cut owner Gallaher today backed a £7.5bn (€11.2bn) takeover offer from the world’s third largest tobacco company.

Tobacco shares were ignited today by speculation over a takeover battle for Gallaher, which owns the brands Benson & Hedges and Silk Cut.

Silk Cut-to-Hamlet group Gallaher today said it achieved record profits last year despite tough markets and the weak US dollar.

Silk Cut-to-Hamlet group Gallaher today announced plans to restructure its factories in the UK and the North as part of an overhaul that could affect 250 jobs in Europe.

Silk Cut owner Gallaher today posted a 4.4% rise in profits, despite what the company said was the negative impact on sales of the smoking ban in Ireland and higher taxes on cigarettes in Germany.