Elliott Management, the biggest shareholder in Swedish Match, is set to make around $150 million after deciding to back Philip Morris International’s $15.7 billion offer for the smokeless tobacco specialist, according to a report by the Financial Times.
Elliott Management, the biggest shareholder in Swedish Match, is set to make around $150 million after deciding to back Philip Morris International’s (PMI) $15.7bn offer for the smokeless tobacco specialist, according to a report by the Financial Times.
The report cites unnamed sources as saying that the activist hedge fund’s decision to tender its 10.5% stake, now puts completion of the deal within reach after the offer received more than 80 per cent of shareholder acceptances at the latest count on Friday, with more expected to be processed on Monday.
The Marlboro maker, which first bid for Swedish Match in May, was forced to sweeten the initial deal after arbitrage funds and activist hedge funds bought up stock, increasing its offer from from SKr106 ($9.63) to SKr116 per share last month.
Under strict Swedish takeover rules, PMI’s offer is conditional on achieving more than 90 cent of shareholder acceptances by a deadline of 4 November, but PMI also reserves the right to complete the offer at a lower level of acceptances.
According to the unnamed sources, PMI is expected to lower the acceptance threshold and extend the offer period by a few weeks so more investors to allow it to complete the deal.
