British American Tobacco ups price for Reynolds American

British American Tobacco agreed to pay a sweetened price for Reynolds American.

In October, British American offered $47 billion to buy the 58 percent of Reynolds it doesn't already own. But that wasn't enough for Reynolds' board directors.

Now, British American has entered a $49.4 billion deal to buy the remaining stake.

The deal could close in the third quarter pending regulatory and shareholder approvals.

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