Elliott raises stake in Swedish Match again as Philip Morris deadline looms

PM) of (PMI) $ billion to acquire Swedish companies. The move comes a week before a Nov. 4 deadline when shareholders must decide whether to bid for their stake in the company, which controls about half of the world’s Snuff market, snuff is a Scandinavian moist oral tobacco product. It is also the global industry leader in nicotine pouches. According to Swedish law, PMI requires % of shareholders agree to the deal, aiming to get a quick piece of the pie – Develop a smoke-free market to fully control the company. by increasing its stake to .5 %, approximately value SEK 2 billion ($1.18 billion) at Friday’s market price, from 7.% Previously, if Elliott rejected an offer, it could be a deal breaker. Bloomberg News reported in July, citing sources, that Elliott planned to oppose the deal. That was before PMI improved terms last week. Elliott did not comment on its intentions. ” Our updated quote remains 18% accept the conditions, which are essential for us to realize the full potential of the combination,” PMI said in an emailed comment. “This is our best and final price and we hope to close the deal next month for full ownership.” Headquartered in New York Hedge fund Davidson Kempner Capital also raised its stake in Swedish Match to 5 percent, according to a regulatory filing with the Swedish Monetary Authority on Wednesday. BlackRock Inc. (NYSE:

BLK) Increased shareholding in Swedish Match to 5.1%. The world’s largest asset manager previously held a 4.4% stake in the company. PMI also has the option of lowering the acceptance threshold and taking a majority stake to prevent a failed bid. Elliott and Swedish Match declined to comment. Investors have been adding to their stakes since July. Shares have risen more than 9% in that time. Swedish Match CEO Lars Dahlgren said he believed the company could be independent grow, and grow with Philip Morris. “I believe we have exciting prospects as a standalone company, but I see exciting potential for a merger Excited about the opportunity,” he said.

The deal was also opposed by other shareholders.

Swedish Match Shares were little changed on Friday, despite outperforming a weaker broader market.

($1=

.66 SEK)