Reynolds American has reportedly rejected British American Tobacco's $47 billion takeover offer (RAI, BTI)

AP Photo/Gene J. Puskar

The cigarette-seller Reynolds American has rejected British American Tobacco's $47 billion buyout offer, according to Bloomberg's Ruth David, Dinesh Nair, and Manuel Baigorri.

The American company is seeking a higher price, according to the report, and BAT is willing to increase its offer slightly.

BAT currently holds a 42% stake in the company.

BAT first made an offer to buy Reynolds last month.

"The proposed merger of our two great companies is the logical progression in our relationship and offers all shareholders a stake in a stronger, truly global tobacco and Next Generation Products company," BAT CEO Nicandro Durante said in a statement at the time.

As Reuters previously reported, a takeover "would give BAT a leading position in the high-value United States market and more premium brands such as Camel which it can sell in countries including Russia and Turkey where demand for Western cigarettes is still growing."

Read the full story on Bloomberg»

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