Elliott Management Backs Philip Morris's $16B Swedish Match Buyout

Philip Morris International Inc PM is going ahead with its $16 billion takeover of Swedish Match AB SWMAY SWMAF despite failing to achieve the 90% acceptance rate.
Marlboro maker had secured 82.59% of the Swedish company, short of the 90% level at which it can start a compulsory purchase of remaining shares.
The company's largest shareholder, Elliott Management, has decided to back the takeover, putting the deal's completion within reach, Financial Times reported.
Elliott had decided to tender its 10.5% stake, pushing shareholder acceptances above 80% and clearing the path to the takeover.
Also Read: Philip Morris Q3 Earnings Top Estimates.
Philip Morris had made its offer conditional on achieving more than 90% of shareholder acceptances by a deadline of November 4. Still, it also reserves the right to complete the offer at a lower level of acceptance.
Philip Morris made a SEK 106 per share offer to buy Swedish Match in May and then raised it to SEK116 per share in October.
The company has also extended the acceptance period until November 25. The price in the offer for shares tendered during the further extended acceptance period will be reduced to SEK 115.07 in cash per share due to the resolved dividend payment by the Swedish Match of SEK 0.93 per share.
Price Action: PM shares are down 1.82% at $88.34 during the premarket session on the last check Monday.