Philip Morris’ takeover bid price for Swedish Match ‘unacceptable’, shareholder says

LONDON (Reuters) – Swedish Match shareholder Bronte Capital said on Wednesday the price Philip Morris International agreed to pay for the Stockholm-based tobacco and nicotine products maker was “unacceptable”, reiterating its opposition to the takeover.

PMI said on Wednesday it was making a cash offer for the Stockholm-based group at 106 crowns per share, valuing it at 161.2 billion crowns ($16 billion). Swedish Match’s board has recommended the offer.

John Hempton, co-founder of the Sydney, Australia-based Bronte Capital hedge fund, said he had been contacted by many shareholders opposing the deal either because the price was too low or because they want the company to stay as it is.

The fund owns about 1% of Swedish Match.

(Reporting by Byron Kaye in Sydney; Writing by Josephine Mason. Editing by Jane Merriman)