Investor Elliott Management Corp (Elliott) has increased its stake in Swedish Match (SWMA.ST) to over 10 per cent as the deadline for Philip Morris International (PMI) looms, reports Reuters.

With the increase, Elliott has raised its clout over PMI’s takeover bid of USD 16 billion for Swedish Match. Shareholders must decide whether or not to tender their Swedish Match shares by 4 November with PMI needing 90 per cent of the shareholders to agree to the deal to gain full control of the company. According to Reuters, by raising its stake from 7.25 per cent to 10.5 per cent (worth around USD 1.66 billion), Elliott could ruin the deal if it chooses to reject the offer as it has planned to do back in July according to a report by Bloomberg News. Since then, PMI has changed the terms of the deal and Elliott has made no further comment on its intentions, reports Reuters.
“Our updated offer retains a 90 per cent acceptance condition, which is critical to allow us to capture the full potential of the combination,” PMI said in an emailed comment. “This is our best and final price, and we hope to complete the transaction next month to achieve full ownership.”
Other players have also raised their stakes in Swedish Match with hedge fund Davidson Kempner Capital Management upping its stake to 5 per cent and BlackRock Inc (BLK.N) boosting its ownership to 5.1 per cent, according to Reuters.
PMI can still reduce the acceptance threshold and take a majority stake in order to prevent the bid from failing.