Two years ago, the company cut its stake in that business to concentrate on cigars "and related affluent market segments."

The sale will cut the Government's stake to 10 percent from 30 percent.

And in any case, active managers are wont to cut their stake in top performers.

Elders, the Australian group, has been ordered to cut its stake to at least 9.9 per cent by June.

The sale cut Sumitomo's stake to 5.5 percent from 8.5 percent.

Volvo said previously that it intended to cut its stake in the drug company.

What has not been publicly reported is that those insiders have since cut their stake even further.

One will cut the state's stake in Japan Tobacco, the former cigarette monopoly, to 50 percent from 67 percent now.

Such sales would cut the Government's stake to about 50 percent and raise, at the current price, about $12 billion.

Mr. Rothschild cut his stake in the firm after a public offering in 1986.