By Chris Duncan
The Associated Press

LOUISVILLE - Dozens of Brown & Williamson employees filed out of the company's headquarters Monday with their heads down, shaken by a merger that will end the company's nearly 80-year relationship with the city.

Brown & Williamson president and chief executive officer Susan Ivey informed employees by conference call at 4:25 p.m. that the company was merging with R.J. Reynolds, a deal that will unite the nation's second- and third-largest tobacco companies.

The merged company's headquarters will be in Winston-Salem, N.C., the home of RJR. When the merger is finalized, Brown & Williamson will no longer have any significant presence in Louisville, B&W spokesman Mark Smith said.

"We all live in this community, and it's been a good relationship," Smith said. "It's unfortunate, but these things happen."

B&W's 460 employees in Louisville will either lose their jobs or be offered a move to North Carolina, Smith said. Many workers refused to comment as they exited the building.

Smith would not say how many of the employees will receive offers to relocate to North Carolina.

"That's to be determined, but significant opportunities," he said.

Louisville Metro Mayor Jerry Abramson said the company's decision is a crippling blow. "It hurts. There's no way to sugarcoat it," he said.

Abramson said he had heard rumors about a possible deal in the past year. He contacted company officials about making a presentation arguing for Brown & Williamson to remain in Louisville.

"No one was really saying much one way or the other," he said.