Philip Morris won Elliott Management support for Swedish Match takeover

As reported Sunday by the Financial Times, activist investor Elliott Management Corp has come up with the decision for Philip Morris International’s (PMI) bid for Swedish Match. PMI has won the support of a key shareholder. The deal is worth $16 billion. 

According to the global publication, Elliott Management tendered its shares, which brought PMI close to the 90% acceptance rate. It should be noted that the company needs 90% stake for compulsory buyout of minorities. 

The latest count on Friday revealed that PMI's offer to acquire Swedish Match was approved by more than 80% of shareholders. More will be processed on Monday. 

Elliott has been increasing its stake in Swedish Match for several months. It held over 10% in October. According to Bloomberg News, despite this fact, it was said to oppose Swedish Match sale at the original offer of 106 Swedish crowns ($9.73) per share.

PMI made an offer to acquire Swedish Match in May. Last month, it raised its offer from 106 to 116 crowns per share as the company's shares traded above the original offer for several months.