Elliott could seek seat on Swedish Match board -source

GDANSK/LONDON, Sept 30 (Reuters) – Elliott Administration Corp, which has raised its stake in Swedish Match (SWMA.ST), would take into account taking a seat on the board of the Stockholm-based maker of Zyn nicotine pouches, based on a supply conversant in the matter.

Together with three different traders and a chair, Elliott is on a nominating committee that underneath Swedish regulation can consider who ought to be on Swedish Match’s board, based on the Swedish Match web site.

Philip Morris Worldwide’s (PM.N) $16 billion supply for Swedish Match is hanging within the stability after Elliott disclosed on Friday that it had elevated its stake to 7.25% from 5.5%.

By Swedish regulation, 90% of Swedish Match shareholders have to approve the supply earlier than Oct. 21, however some oppose the 106 Swedish crown per share bid for one of many world’s largest makers of oral nicotine merchandise.

Elliott, an activist hedge fund supervisor, declined to remark.

Bloomberg reported in July that the activist investor was believed to be planning to oppose the deal underneath its present phrases. Elliott’s elevated stake means the supply will fail if one other 2.75% of shareholders take an analogous view.

Philip Morris and Swedish Match didn’t instantly reply to requests for remark.

Philip Morris in Could supplied to purchase the corporate in a wager on the fast-growing marketplace for cigarette alternate options.

In accordance with Euromonitor Worldwide, Swedish Match controls about half the world marketplace for snus – a Swedish-style snuff that’s moist and smoke-free. The corporate can be the worldwide business chief for nicotine pouches.

Swedish Match shares traded at 110 crowns on Friday and have been buying and selling above the supply value since late July, suggesting traders anticipate PMI might want to make the next bid.

Philip Morris’ CEO instructed Reuters this week the corporate shouldn’t be contemplating withdrawing its supply regardless of deteriorating world financial circumstances and has “choices on the desk” together with holding a majority stake.

Shareholder Framtiden Partnerships, which has held Swedish Match shares for practically 20 years and owns 1%, instructed Reuters final week that it opposes the takeover.

($1 = 11.1382 Swedish crowns)

Reporting by Marie Mannes in Gdansk and Richa Naidu in London; Enhancing by Matt Scuffham, Jan Harvey and Cynthia Osterman

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