Vector Group, a maker of discount cigarettes, on Tuesday said it will offer to buy its partially owned real estate unit New Valley Corp in an all-stock deal that values the company at about US$ 209.7 million.

Separately, Vector said chief executive Bennett S. LeBow is stepping aside to become executive chairman, effective 1 January 2006. The company named Howard M. Lorber to succeed him as CEO.
Mr LeBow, 67, served as chief executive since 1990 and signed a three-year contract for the new position, Vector said. Mr Lorber, 57, has worked as president and chief operating officer since 2001. He will continue as president and a director.
The company said it would offer 0.461 shares of its common stock for each New Valley share. Based on Vector's Monday closing stock price of US$ 19.54 on the New York Stock Exchange, the takeover bid values New Valley stock at US$ 9 per share – a 21 per cent premium to its US$ 7.45 closing price on the Nasdaq. Vector said it would issue about 4.4 million shares to complete the transaction. The company currently owns about 58 per cent of New Valley's 23.3 million common shares outstanding. (pi)