American Brands Cuts Ties To Tobacco

American Brands Inc., once one of America’s largest cigarette makers, said Tuesday it wants to kick the habit for good and concentrate on selling staplers, bourbon and golf balls.

The company will spin off its British-based Gallaher tobacco business and change its own name to Fortune Brands. It would be the first major tobacco company to completely cut ties to the tobacco business.

American Brands’ shares rose nearly 8 percent on the news, jumping $3.62-1/2 a share to $48.12-1/2 on the New York Stock Exchange.

While the plan drew a favorable response on Wall Street, it also aroused criticism from anti-smoking advocates, who accused the company of trying to avoid the legal and moral crusade against tobacco businesses.

“They can run but they can’t hide,” said John Banzhaf of the New York-based Action on Smoking & Health, a non-profit group that has been instrumental in promoting anti-smoking legislation.