
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 24, 1994                   TAG: 9405240115
SECTION: BUSINESS                    PAGE: C8   EDITION: METRO 
SOURCE: associated press and staff reports
DATELINE: RICHMOND                                LENGTH: Medium

PHILIP MORRIS MAY SPIN OFF TOBACCO

The directors of Philip Morris Cos. Inc. meet this week in New York, and analysts are watching closely for signs of a new corporate strategy in response to heightened criticism of the tobacco industry.

Analysts and shareholders want to know whether Philip Morris will spin off its tobacco operations - a possibility the company has only hinted at. Philip Morris won't confirm the spinoff issue will be on the board of directors' agenda Wednesday.

Philip Morris representatives have declined to discuss the possibility of a split, referring instead to a statement issued last month which said the company periodically reviews ``structural alternatives to enhance our business prospects, including separating our tobacco and non-tobacco businesses. We are currently studying such a separation.''

|- Associated Press

Roanoke Gas

to split 2-for-1

Roanoke Gas Co.'s board of directors has approved a 2-for-1 split of the company's stock, effective July 1.

The stock split announced Monday will be in the form of a 100 percent stock dividend payable to those who hold the company's stock on June 15. The split is the first in the company's recent history.

After the split, the stock price is expected to be in the range of similar sized utilities, Roanoke Gas President Frank Farmer said in a statement. The stock was selling Monday at $33.50 a share, unchanged from Friday.

"Most utility stocks are in the $15 range and we believe this price will make our stock more attractive to a broader group of investors," Farmer said. The stock will be easier to buy and sell in round lots at the lower price, he said.

After the split, Roanoke Gas will have roughly 1.34 million shares outstanding to approximately 1,400 shareholders, about 58 percent of whom are company customers. The company has gained 594 new stockholders since November, when it began a customer stock ownership and a dividend reinvestment plan, Vice President John Williamson III said.

Another action taken in the past year to increase the value of the company's stock was its listing on the Nasdaq National Market system in February.

|- Staff report

by CNB