Philip Morris International (NYSE:PM) is expected to raise its bid for Swedish Match (OTCPK:SWMAY).
Philip Morris (PM) may announce the revised bid for snus maker Swedish Match, up from its original $16 billion offer in May, on Thursday, according to a WSJ report.
Separately, Philip Morris (PM) agreed to pay $2.7 billion to regain the U.S. rights for its IQOS heated tobacco products from Altria (NYSE:MO), according to a statement from Altria on Wednesday evening. Altria received a payment of $1 billion upon entering the agreement and PM is obligated to make an additional payment of $1.7 billion (plus interest) by July 2023.
The revised bid for Swedish Match comes after activist investor Elliott and other investors have increased their stakes in the snus maker in order to pressure Philip Morris (PM) to pay more in a takeover.
Philip Morris (PM) needs 90% approval from Swedish Match shareholders by Friday for the deal to make it to the finish line.
Hedge funds Davidson Kempner Capital Management and HBK Capital Management, DE Shaw, Farallon Capital Management, and Pentwater Capital Management are reported to be key players pushing for a higher bid.
Philip Morris (PM) is expected to report Q3 earnings on Thursday amid inflationary, FX headwinds.
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