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S he ehy
SATUS is success!ul.in acqu--:--,ng Farmers?
A . He will hold a job within the
financial department or area of Farmers to help
them to understand how they would be integzated,
their financial plans would-be integrated with
BATUS, and to get to understand how the Farmers,
systems work as well, Cinancial controls and
systems operate.
Have you discussed the subject of
that position for Mr. Arentsen with Mr. Frigone
A. Not in depth.
Q. Have you discussed it with Mr.
Arentsen?
A . Not me.
Q. Is it your understanding that someone
else has discussed it with Mr. Arentsen?
A. It's my understanding Mr. Frigone
has .
Is it your understanding that Mr.
Arentsen has agreed to accept that position?
A. As I haven't heard to the contrary.
Q. Do you anticipate any other
individuals other than Mr. Arentsen being added
to Farmers if the acquisition is successful?
Sailev & Shelkin. T ncEXHIBIT
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Sheehy
A. Not at Ihis time.
Q.. Does B.A.T either on its consolidated
!inancial statements or on the financial
x tattmen ts of any of its affiliated compan.-es
carry any reserves for potential liabillties
ari s -: ng out of lawsuits relating to smoking
and
h e a 1 t h ?
A N a
Does B.A.T or any of its atfiliated
companies have insurance coverage for potential
liabilities arising from lawsuits relating to.
smoking and health?
A . N o
Has such insurance been sought by
B.A.T or its affiliated companies?
A. Not to my knowledge.
Q. Does Eagle Star provide insurance
coverage of any type for any of the B.A.T tobacco
affiliates?
A . I -- I don't know, but I suspect so.
Q. Do you have any knowledge of the
types of insurance provided?
A. I would suspect it would be property
and casualty insurance on buildings or mar-,ne
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BAT Industries document for Province of British
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I Sheehy
2 insurance on trade;.!-;re. I would
3 Has B.A.T or any of its affilLated
4 companles conducted any studles or investigated
5 In any fashion the potential liabil-ity for
3.k.T
6 a!!iliates if pla.;nt--!!s are successful In
7 !awsuits relating smoking to health?
a A . N o .
9 Has B.A.T or any of its affiliated
10 companies ever conducted any studies
11 -investigating whether there is a link between
12 smoking and cancer?
13 A . We have done a great deal of research
14 into the properties of smoke, but we have done
no
is human studies.
16 What do you mean by research relating
17 to the properties of smoke?
18 A. Smoke is made up of thousands of
19 chemical components, and we have done an awful
20 lot of research into identifying those many
21 components.
22 Have you conducted any studies
23 concerning a link between any of those chemical
24 components and cancer?
25 A. Not with humans.
Sailev r. Shelkin. Tnc.
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BAT Industries document for Province of British
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I Sneehy
2 Have yoC conducted them with nonhuman
3 living animals?
4 A Yes
5 Have any ot those studies shown there
6 is a link between the chemicals and cancer?
7 A. Not conclusIve.
8 Has B.A.T either through a trade
9 association or any type of arrangement with
other
10 tobacco companies participated in or received
the
11 results of studies concerning the potential
12 liability to the tobacco industry from suits
13 linking smoking to health?
14 A. Not that I'm aware of.
Has B.A.T received the results of any
16 such studies concerning a link between smoking
17 and cancer?
A. I didn't quite get your question.
19 1 wasn't going to repeat that whole
20 preamble, but the question is whether or not
21 B.A.T either through a trade association group
or
22 through any other type of arrangements with
other
23 tobacco companies has participated in or
received
24 the results of a study whether there is a link
25 between smoking and cancer.
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Sh e e h y
A N 0 .Not, that I'm aware of.
Is S~A.T or any at its affiliated
companies a party to any intercompany agreements
5 to share 11abilitles arising out of lawsuits
linking smoking to health?
A. N a
(Discussion off the record.)
Mr. Sheehy, does B.A.T have under
I consideration any scheme to divest itself of its
1'. South A-Arican activities?
i 2 A . We have a contingency plan.
12 What is that plan?
A . It is to ensure that if we had to, we
could do it with the least disruption to the
businesses and the people in the businesses in
!7 South Africa.
What do you mean when you say if you
19 had to; what factors have you contemplated
might
3 force you to have to do that?
2 i A . Were our business activities in any
22 other part of the world to be significantly
23 affected by our presence in South Africa, as it
24 is only I percent of our profits, we would
2 ;; d i v e s t .However, we do not believe that
this
Bailey & Shelkin, Inc.
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BAT IndustrieS document for Province of BritiSh
COIUMbia 5 Novernber 1999