MADRID, Spain (AFP): Cuba might upset a likely takeover bid by Imperial Tobacco for Spanish-French group Altadis because it has an option to buy the cigar division, press reports and analysts said on Friday.

The Spanish newspaper ElEconomista aid that Cuban leader Fidel castro "is not prepared to share the equity with a British company."

The possibility for Communist Cuba to disrupt a takeover on the stock market arises because Cuba has an option to buy the cigar business if its shareholding structure changes, they said.

Asked about the possible move by Cuba by AFP in France and Spain on Friday, Altadis declined to comment and did not confirm that such a pre-emption clause on the cigar business Corporacion Habanos existed.

The offshoot has been owned equally by Altadis and by the Cuban government since 2000 when Altadis bought its 50-percent interest.

The business, Corporacion Habanos, is considered to be a jewel in the Altadis group, owning the brands of Montecristo, Cohiba, Romeo y Julieta and Partagas. It accounts for 22.0 percent of group sales and 24.0 percent of gross operating margin.

ElEconomista said the Cuban option could be a major obstacle to a takeover.

At brokers Societe Generale, analysts said Imperial Tobacco would want to retain the cigar business and would want to be sure of support from Altadis to negotiate an agreement with Cuba.

This might mean that Imperial Tobacco would have to raise its proposed terms of 45 euros per share, valuing the group at about 11.5 billion euros (15.2 billion dollars), they said, estimating that it might have to go to 49 euros.

Brokers Lehman Brothers said Imperial might have to offer 48 euros.

In late afternoon trading here, the Altadis shares were being quoted at 45.5 euros in heavy dealing.

At brokers Caja Madrid, analysts said they thought that British American Tobacco might make a counter offer, saying: "We are a stage where it is 'now or never' in the tobacco market because this could be the last big operation in the sector."