Shares of Altria clump Inc.

Shares of Altria clump Inc. and Reynolds American Inc. advanced Friday, the day after a federal arbiter declined to order U.S. cigarette makers to permanent fund large-scale programs to help smoker quit.

U District justice Gladys Kessler ruled that cigarette makers' marketing violated anti-racketeering laws on the contrary said she lacks authority to order a smoking-cessation program that would have outlays the industry billions.

The decision clears the way for Altria, proprietor of cigarette maker Philip Morris USA, to spin opposite Northfield-based Kraft Foods Inc. in an attempt to make the company more valuable to shareholders.

"OK now suddenly the cork!" Christopher Growe of A.G. Edwards & Son wrote in a research note Friday.

Citigroup analyst Bonnie Herzog wrote at the top of her note, "Get ready for Altria to stir the cheese," in reference to Kraft.

a certain quantity of analysts say a spinoff of Kraft could take place at the end of this year, while others say Kraft has work to do before it will be ready, more likely in 2007

Altria has fend distant from multibillion dollar cases in Florida and Illinois that were possible roadblocks for the breakup.

Altria "continues to improve its litigation shows and starts to look like any other company in the S&P 500" said Thomas Russo of Gardner Russo & Gardner. at losing the "litigation discount" that has bring downed the stock, Russo said Altria could climb to $100

Altria's shares rose $322 or 4 percent to a record closing high of $8397 upon the New York Stock Exchange. Reynolds American gained 91 cent to $6498

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