Imperial Tobacco Group today said it was trading in line with its expectations and that it increased cigarette volumes in its first-quarter.
The group gave a trading update for its first-quarter - October-December 2006 - ahead of its annual general meeting later today.
The company added it will continue its share buyback strategy, aiming to keep its capital structure efficient whilst maintaining its balance sheet flexibility.
Imperial has been linked sporadically with a bid for Franco-Spanish group Altadis over the last 25 months, and speculation has heightened since Imperial's big UK rival, Gallaher Group, agreed last month to a £7.5 billion takeover by Japan Tobacco.
