Altria Group Inc (MO)

[EZ2]

MO ~~~ Saudi to sue tobacco firms
for more than $2.7 bln

Sat May 19, 2007 3:12 AM ET

RIYADH, May 19 (Reuters) - Saudi Arabia will seek more than $2.7 billion in damages from international tobacco companies in a lawsuit due to go on trial in the capital Riyadh on Sept. 11 this year, the kingdom's health ministry said on Saturday.

In November, the ministry threatened to sue international tobacco companies unless they paid the government and patients the full cost of treatment for tobacco-related illnesses.

This is the first time it has put a value on the claim.

The suit will require companies to pay a lump sum of 10 billion riyals ($2.67 billion) plus 500 million riyals a year for the treatment of tobacco-related illnesses, the ministry said in a statement on its Web site. It did not say what period the compensation would cover.

The ministry did not name any companies.

Philip Morris <MO.N>, British American Tobacco Plc <BATS.L> and Altadis <ALT.MC> are among the foreign firms that sell tobacco products in Saudi Arabia.

($1=3.750 riyals)