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Dow Jones Newswires: Swedish Match recommends shareholders accept $16 billlion Philip Morris offer

Under the proposal, accepting shareholders of the Stockholm-based company will get SEK106 in cash for each share held. Read More...

By Ian Walker

Swedish Match AB said Wednesday that it has received a 161.2 billion Swedish krona ($16 billion) public cash offer from Philip Morris International Inc. which it recommends shareholders accept.

Under the proposal, accepting shareholders of the Stockholm-based company will get SEK106 in cash for each share held. The price is a 39% premium to the company’s share price of SEK76.50 on Friday, the day before the Wall Street Journal reported that the companies were in talks and they confirmed them.

On Monday, the Wall Street Journal said that the tobacco giant was in talks over a potential $15 billion offer for Swedish Match, a report that was later confirmed by both companies.

Write to Ian Walker at [email protected]

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