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Philip Morris in May offered to buy the Stockholm-based maker of
Zyn in a $16 billion bet on the fast-growing market for
cigarette alternatives.
Swedish Match and Philip Morris did not immediately respond to
requests for comment. Elliott declined to comment.
By Swedish law, 90% of Swedish Match shareholders need to
approve the offer before Oct. 21, but some have come out against
the 106 Swedish crown per share bid for one of the world's
biggest makers of oral nicotine products.
Swedish Match, whose shares were worth SEK 110 on Friday, has
been trading above the offer price since late July, suggesting
investors anticipate PMI will need to make a higher bid.
Elliott has yet to support or oppose the deal, but Bloomberg
reported in July that the activist investor was planning on
coming out against it under its current terms.
Still, Philip Morris' CEO told Reuters this week it is not
considering withdrawing its offer despite deteriorating global
economic conditions, and has "options on the table" including
holding a majority stake.
According to Euromonitor International, Swedish Match controls
about half the world’s market for snus - a Swedish-style snuff
that is moist and smoke-free. The company is also the global
industry leader for nicotine pouches.
Long-time shareholder Framtiden Partnerships, which has held
Swedish Match shares for nearly two decades and currently owns
1% of the stock, told Reuters last week that it opposes the
takeover. Managing Member Dan Juran said he estimates Swedish
Match to be worth close to 200 crowns per share.
($1 = 11.1382 Swedish crowns)
(Reporting by Marie Mannes in Gdansk and Richa Naidu in London;
Editing by Matt Scuffham and Jan Harvey)
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