He was recently named president of Lorillard Inc., Loews's tobacco subsidiary, but remains a Bulova director with continuing operating responsibility.

B.A.T. wants to consolidate Imasco's tobacco subsidiary within its global tobacco business and has been selling nontobacco holdings.

Last summer, Mr. LeBow proposed that Liggett either buy the tobacco subsidiary of American Brands, or be acquired by it.

Previous management at the R. J. Reynolds Tobacco Company, the company's tobacco subsidiary, had used the sales practice, called "trade loading," to increase reported sales and market share.

The largest reduction in spending occurred in RJR's domestic tobacco subsidiary, the R. J. Reynolds Tobacco Company.

RJR Nabisco said in its filing that a settlement "could have a significant negative effect" on its tobacco subsidiary and on the financial health of the parent company.

Adam Bryan-Brown, a spokesman for Reynolds' international tobacco subsidiary in Geneva, said governments were responsible.

The ending of trade-loading sharply depressed financial figures for the tobacco subsidiary last year.

American Brands said yesterday that its executives talked during the summer with Liggett Group about the possibility of Liggett's buying American's tobacco subsidiary.

Executives at Goldstone's tobacco subsidiary had feared that their C.E.O., the industry naif, had been selling them out.