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Several large hedge funds have taken stakes in Swedish Match (OTCPK:SWMAF) as they try to pressure Philip Morris International (NYSE:PM) to increase its $16 billion offer for the smokeless tobacco company.
Davidson Kempner Capital Management and HBK Capital Management have taken some of the biggest stakes in Swedish Match (OTCPK:SWMAF) and are both nearing the 5% level, according to a Bloomberg report, which cited people familiar. DE Shaw & Farallon Capital Management and Pentwater Capital Management also have taken stakes.
Along with prominent hedge fund and activist investor Elliott Management, which already reported a stake in Swedish Match, the hedge funds collectively own a 25% stake in the smokeless tobacco firm, according to the report. Some funds are said to have written to Philip Morris (PM) to push for a price increase.
Elliott disclosed in late August it had accumulated a 5.25% in the smokeless tobacco company after Bloomberg first reported in early July that Elliott had taken a stake and was against the deal under its original terms.
Bloomberg reported earlier this month that PMI was said to mull lowering the acceptance threshold for the Swedish Match (OTCPK:SWMAY) deal. The maker of Marlboro brand cigarettes’ bid is currently conditioned on getting more than a 90% stake in Swedish Match.
