Reynolds, whose brands include Camel and Pall Mall, offered $68.88 per Lorillard share, representing a premium of 2.5 percent to Lorillard’s Monday closing. Lorillard’s shares, which have risen about 37 percent since reports in February of a possible deal, were down 5.5 percent at $63.50 before the bell on Tuesday. Analysts say deal will help the No. 2 and No. 3 U.S. players compete with Marlboro maker and No. 1 Altria Group Inc (MO.N) in a market where sales volume is falling about 4 percent a year as more Americans quit smoking.