c. BAT decided that the appropriate response to Goldsmith was to abandon its diversification strategy and to focus on tobacco and financial services. Accordingly, it considered selling the U.S. retail business and using the proceeds to repurchase up to 10% of its shares and part of the tobacco cash flow to increase its dividend from 20.1 pence to 30 pence a share. It also planned to divest the U.K. catalog business (Argos) and the paper business made up of Wiggins Teape and Appleton (WTP). However, selling them was not tax-efficient as both groups were carried at a low-tax basis. The pro-forma information is provided below. What do you recommend?