Nov 6 (Reuters) – Activist investor Elliott Management has backed Marlboro maker Philip Morris International’s (PMI) $16 billion bid for Swedish Match AB , reports the Financial Times on Sunday.
Philip Morris’ offer had received the agreement of more than 80% of shareholders at the last count on Friday and more could be processed on Monday, the FT reported, citing people familiar with the matter.
According to Swedish law, PMI must obtain the agreement of 90% of the shareholders to take full control of Swedish Match.
The deadline for depositing securities by shareholders expired at 4:00 p.m. GMT on Friday.
US investor Elliott, PMI and Swedish Match declined to comment.
Elliott has increased its stake in Swedish Match in recent months, taking it to more than 10% in October. Bloomberg News reported in July that Elliott was in the process of increasing its stake but opposed the initial offer of 106 Swedish kronor (9.77 euros) per share.
Philip Morris, which launched its takeover proposal in May, raised its offer to 116 crowns last month as Swedish Match stock traded above the initial offer.
PMI, headquartered in the United States, does not currently have a presence in its home market, but Swedish Match is expanding rapidly there.
The Swedish group makes most of its profits from “snus”, a tobacco powder consumed by placing it between the gum and the lip. He also owns the Zyn brand of tobacco-free nicotine pouches, whose sales are growing rapidly in Scandinavia and the United States. (Written by Maria Ponnezhath in Bangalore and Marie Mannes in Gdansk, French version Kate Entringer)