P.M. BRIEFING : BAT Industries Says Profit Up 20%

Britain’s BAT Industries today posted a 20% rise in pretax profits for the first half of the year, citing the strong results as a reason for shareholders to reject a $21-billion takeover offer from financier Sir James Goldsmith.

BAT reported pretax profits of $1.27 billion in the first six months of 1989, up from $1.06 billion in the same period last year. Revenue climbed to $15.7 billion from $12.8 billion.

Shares in the conglomerate, whose holdings include Brown and Williamson tobacco in the United States, Benson and Hedges tobacco in Britain and Los Angeles-based insurance firm Farmers Group Inc., rose 17 cents to $12.94 each on the news.

Last month Goldsmith announced his bid, the largest ever made in Europe, for BAT through his Hoylake investment company. The offer valued BAT shares at $13.34 each.