Hedge funds said to amass large stakes in Swedish Match to pressure Philip Morris Int

Trygve Finkelsen/iStock Editorial via Getty Images

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 familiar people. DE Shaw & Farallon Capital Management and Pentwater Capital Management have also 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 that 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 be 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.

Trygve Finkelsen/iStock Editorial via Getty Images 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…

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