Swedish Match top 10 investor says Philip Morris bid a ‘healthy premium’

div classBodysc17zpet90 cdBBJodivpLONDON Reuters – Philip Morris‘ 16 billion offer for Stockholmbased Swedish Match represents a “healthy premium” and the Marlboro maker could yet go higher, Swedish Match’s No. 10 shareholder GACMO Investors said on Thursday.p

pMarlboro maker Philip Morris agreed on Wednesday to buy Swedish Match, one of the worlds biggest makers of oral nicotine products. These include Snus – a sucked tobacco product the firm says is less harmful than smoking – as well as Zyn nicotine pouches, which are used the same way and tobaccofree.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pKevin Dreyer, cochief investment officer, value, at GAMCO identified Japan Tobacco Inc JTI as a possible rival bidder but said it would be hardpressed to hijack the deal. GAMCO, formerly known as Gabelli Asset Management Company, owns just over 2 of Swedish Match, according to Refinitiv.p

p“PMI has very deep pockets and will be a tough company to outbid,” he said. “This deal is really the culmination of the last fivetoseven years of work Swedish Match has done in developing Zyn into the leading brand, and having that advantageous market share – its an attractive stock.”p

pPhilip Morris declined to comment. Swedish Match and JTI did not immediately respond to a request for comment.p

pPhilip Morris needs at least 90 of shareholders to approve the deal for it to succeed. Some other shareholders have questioned whether the Philip Morris offer represents good value. Swedish Match shareholder Bronte Capital said on Wednesday the price Philip Morris agreed to pay was “unacceptable”.p

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pp Reporting by Richa Naidu editing by David Evans and Emelia SitholeMatarisep

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