Philip Morris International (PMI) is coming under pressure to up its $16 billion bid for Swedish Match following news that some of the world’s largest hedge funds have built stakes in the smokeless tobacco company, according to a report by BNN Bloomberg.
The report cites unnamed sources as revealing that Davidson Kempner Capital Management and HBK Capital Management are among the funds to have built sizeable stakes Swedish Match. Both are reportedly approaching the 5% limit which equates to nearly $800 million in stock, beyond which disclosure would be required.
With DE Shaw & Co, Farallon Capital Management and Pentwater Capital Management having also acquired Swedish Match stakes and Elliott Investment Management also holding a 5.25% stake, hedge funds now collectively own at least 25% of the business, and some have already written to PMI regarding an increase in the offer price.
