Prepared and filed by St Ives Burrups

Form 6-K

Securities and Exchange Commission
Washington, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For December 16, 2005

Gallaher Group Plc

(Translation of registrant’s name into English)

Members Hill
Brooklands Road
Weybridge
Surrey KT13 0QU
England
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover form 20-F or Form 40-F.

Form 20-F          Form 40-F

Indicate by check mark whether the registrant by furnishing the information contained in the Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes           No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b).

82 ________

"Allotment of Shares
On 14 December 2005 Gallaher Group Plc confirmed the allotment of 51,366 new 10p ordinary shares in the Company in respect of options that have been exercised under the Company's Savings Related Share Option Scheme. The shares were allotted at the following prices:

3,841 shares at £2.97
15,875 shares at £3.30
1,585 shares at £3.50
3,403 shares at £3.67
16,927 shares at £4.43
2,158 shares at £5.05
7,577 shares at £5.59


The total number of Gallaher Group Plc shares in issue now stands at: 655,966,722 shares."


FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
Securities and Exchange Commission

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

      Gallaher Group Plc
(Registrant)
       
  By:   /s/ Robin Miller
  Name:   Robin Miller

Date: December 16, 2005

Title:   Deputy Company Secretary