Reunification talks confirmed

Philip Morris International (PMI) is in discussions with Altria about a possible all stock merger of equals, the companies announced Tuesday.

The companies did not disclose the stake each would expect to hold in a newly combined company, but people familiar with the talks told CNBC that PMI and Altria are weighing a 59 percent and 41 percent split, respectively.

The deal would result in a divided board and management, the people said, requesting anonymity because they are not authorized to speak publicly. The current deal being discussed does not envision a premium for shareholders of either company.

Talks intensified this summer, and a deal could be announced within weeks, the people said.

A deal would reunite PMI and Altria more than a decade after the two companies split. Altria spun off PMI in 2008 and has remained a largely U.S.-focused company selling Marlboro cigarettes domestically while PMI has focused on selling cigarettes overseas.