Philip Morris Int'sl 1Q profit rises 29 pct, tops estimates

The breakup freed the larger PMI from legal and public relations concerns in the United States, where it has been involved in several class action lawsuits brought by smokers who say they were sickened by its products.

PMI, which is based in Lausanne, Switzerland, operates in more than 160 countries. It had revenue of $55.1 billion in 2007, compared with Philip Morris USA's $18.49 billion.

Besides Marlboro, PMI makes L&M and Bond Street brands, as well as other products tailored to local markets such as the clove-based Marlboro Mix 9 in Indonesia and Marlboro Fresh Mint and Crisp Mint in Hong Kong.

In its announcement on the purchase, PMI said the fine-cut tobacco brands being acquired account for about 2 percent of the fine-cut market in the EU. The European Union required Imperial Tobacco to make the divestments when it bought Altadis.

PMI shares slipped 0.6 percent to 51.75 Swiss francs ($51.36) traded on the Zurich exchange were down .