Activist Elliott said to oppose Swedish Match $16B sale to Philip Morris International
Jul. 07, 2022 4:56 PM ETSwedish Match AB (publ) (SWMAY), PM, SWMAFBy: Joshua Fineman, SA News Editor28 Comments
- Activist Elliot Investment Management is said to be accumulating a stake in Swedish Match (OTCPK:SWMAY) as it attempts to oppose a $16 billion sale of the smokeless tobacco company to Philip Morris International (NYSE:PM).
- Elliott is said to be against the deal under its current terms, according to a Bloomberg report, which cited people familiar.
- The report comes after Philip Morris (PM) struck a deal to purchase Swedish tobacco giant Swedish Match AB (OTCPK:SWMAY) for $16 billion in May. The deal received some initial negative reviews from holders who said they planned to oppose it.
- A Jefferies analyst said in May that Philip Morris’ (PM) bid for Swedish Match (OTCPK:SWMAY) faces significant risks from retail investors. He added that the 90% tender threshold could prove a high bar to clear.
- Swedish Match (OTCPK:SWMAY) shares rose last Tuesday after Philip Morris’ (PM) proposed acquisition of the company was given an OK by Swedish regulators.