Philip Morris International (PMI) has tabled an improved “best and final” offer to acquire smokeless tobacco specialist Swedish Match AB, after investors including activist hedge fund Elliot Management indicated they were unhappy with the original proposal, according to a report by Euronews.
Marlboro maker PMI has upped its all-cash buyout bid for the Stockholm-based firm by 9% to 116 Swedish crowns per share from 106 crowns per share, although the total value of the offer is relatively unchanged due to the recent appreciation in the value of the US dollar against the Swedish krona.
In July, Bloomberg revealed that Elliott was among a group of shareholders opposed to the original deal and the fund subsequently upped its stake in September from 5.5% to 7.25% in anticipation of an improved bid from PMI.
Elliot has so far declined to comment on the improved offer although other investors including, and Sydney-based Bronte Capital, which owns 1% of Swedish Match, have indicated that they may still not accept the deal which requires a 90% shareholder acceptance rate to proceed.
