SWMAY - Activist Elliott targets raising Swedish Match stake above 5% - report

Activist Elliott Management is said to be planning to raise its stake in Swedish Match ( OTCPK:SWMAY ) above 5%.

Elliott is accumulating the stake as it plans to oppose Swedish Match ( OTCPK:SWMAF ) sale to Philip Morris International ( NYSE: PM )  under the current terms, according to a Dealreporter item. At least two other holders have also had concerns about the price being offered.

The updates comes after Bloomberg reported earlier this month that Elliott is said to be accumulating a stake in Swedish Match ( OTCPK:SWMAY ) as it attempts to oppose the $16 billion sale of the smokeless tobacco company to Philip Morris ( PM ).

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.

Recall Thursday, Philip Morris ( PM ) topped consensus marks with its Q2 earnings report.

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