SWMAY - Philip Morris bid for Swedish Match finds mixed reception from major shareholders

Philip Morris’ (NYSE:PM) blockbuster $16 billion bid for Swedish Match (OTCPK:SWMAY) isn’t pleasing to all parties apparently. Per Reuters, Bronte Capital, a major shareholder in the Swedish snus giant, called the deal terms “unacceptable” and vocally opposed Philip Morris’ (PM +0.4%) proposed takeover. The outlet reported that Bronte Capital co-founder John Hempton claimed his staunch stance against the deal was prompted by repeated calls from shareholders opposing the deal on various grounds. The opposition dovetails with the objection of Swedish Match (OTCPK:SWMAY) board member Pär-Ola Olausson who declared the terms of the offer “do not reflect the long-term fundamental value of the company.” GAMCO co-CIO Kevin Dreyer, by contrast, was much more approving of the deal. The CIO of the firm’s 9th-largest shareholder told Reuters the deal offered a “healthy premium” to the current share price. Overall, he argued, the deal is a reasonable one and stands a good chance

For further details see:

Philip Morris bid for Swedish Match finds mixed reception from major shareholders