Elliott backs Philip Morris’ sweetened £13bn bid for Swedish Match
Swedish Match’s biggest investor Elliott Management has reportedly agreed to back Philip Morris International’s $15.7bn (£13.8bn) swoop for the firm.
Sources told the Financial Times that the deal now had more than 80 per cent of shareholder acceptances, with more expected to be submitted tomorrow.
Under Swedish takeover rules, PMI’s offer is conditional on gaining 90 cent of shareholder acceptances by a deadline of November 4.
The Malboro maker last month raised its offer for the nicotine pouch maker to 116 kronor ($10.34) per share from 106 kronor, hoping to finalise the takeover and appease hedge funds who have been craving a higher bid.
Sources told Bloomberg at the time that although Philip Morris’ (PMI) attempts to grab the firm have been challenged by hedge funds, led by Elliot Management, at least four of those funds are now poised to tender their stakes.
PMI chief exec Jacek Olczak said the bid was its “best and final” offer, which would benefit both sides.
Philip Morris also agreed to pay tobacco group Altria around $2.7bn for the US commercialisation rights for e-cigarette brand IQOS.
It is understood that the firm plans to utilise Swedish Match’s retail distribution channels to push these new products in the US.
The majority of Swedish Match’s products are sold in the US and Scandinavia, and the company develops and manufactures a variety of products, including Smokefree, Cigars, and Lights.
Swedish Match’s shares have jumped nearly 50 per cent since the PMI first announced its cash offer for the Stockholm-based group in May.
PMI, Swedish Match Elliot Management all declined to comment on these reports.