Philip Morris International Inc made the "best offer" to acquire Swedish Match AB. It was set to pay 116 Swedish crowns ($10.53) per share. Framtiden Partnerships, a Swedish Match shareholder for nearly two decades, said it would reject the deal.
Framtiden is an U.S. investment firm with about 1% of Swedish Match shares. The shareholder said it would not tender its shares before the Nov. 4 deadline. Framtiden opposes the deal with Philip Morris. The company previously emphasized that Swedish Match should remain an independent company.
Dan Juran, managing member of Framtiden,values the business at about 200 Swedish crowns per share, which exceeds the Philip Morris offer.
The negotiations between Philip Morris and Swedish Match were confirmed in May. In October, the company increased the price offer from 106 to 116 Swedish crowns as the company's shares traded above the original offer for several months.
Only a few days are left before the deadline when shareholders must decide whether to tender their shares in the company or not. The decision of Elliott Management, which raised its Swedish Match stake to over 10% last week, is also unclear. Bloomberg News reported in July that the shareholder was planning to oppose the deal.