Elliott Management Corp. has decided to back Philip Morris International’s bid for Swedish Match, reports the Financial Times.
By the Nov. 4 acceptance deadline, the multinational’s offer had received more than 80 percent shareholder acceptance.
In May, PMI bid about $16 billion for Swedish Match. Swedish Match’s board of directors recommended shareholders accept the offer, but some investors, including Elliott Management Corp., objected, saying the bid undervalues their firm.
In October, PMI increased the price of its bid to SEK116 per share from the SEK106 per share offered in May. Swedish Match’s board of directors advised shareholders to accept PMI’s revised offer.
Earlier this week, Framtiden Partnerships said it would not accept PMI’s sweetened offer, according to Reuters.
In a white paper, the investor, which owns nearly 1 percent of the Swedish nicotine products manufacturer, explained it believes Swedish Match is better off as an independent company.
PMI’s bid has won approval from regulators in the EU, Brazil and the United States.