Shares in Imperial Tobacco have wilted this morning amid fears that the group's dividend will fall.
The manufacturer of Gauloises and Lambert & Butler warned of the effect its acquisition of Altadis might have on its payout to shareholders.
"Our policy of progressive dividends based on underlying earnings growth is unchanged with a payout ratio of around 50%, whilst recognising the cash impact of the Altadis restructuring," the company said as it announced first-half results.
Shares in the FTSE 100 stock have dipped almost 6% to £15.41.
However, Investec analyst Martin Deboo made a positive assessment of the interim figures, hailing them as "a solid set of results".
"While not immune to recessionary pressures, Imperial is trading well in line with expectations and Altadis synergy realisation remains on track," he wrote.
"Imperial is well positioned against trading down trends but we have minor concerns over modest loss of share in UK and France.
"We don't anticipate material changes to our forecasts and maintain our hold."
