Reynolds Said to Reject BAT’s $47B Acquisition Offer

Reynolds American Inc., the second-largest cigarette seller in the U.S., is seeking a higher price from British American Tobacco Plc after rejecting a $47 billion buyout offer as too low, according to people familiar with the matter.

The tobacco giants are in talks and BAT is willing to increase the price slightly, said the people, who asked not to be named because the details aren’t public. BAT, which already owns 42 percent of Reynolds, disclosed its proposal to acquire the rest of the company on Oct. 21.

Spokesmen for BAT and Reynolds declined to comment.

The transaction would let BAT ...