Swedish Match soars on potential takeover by Philip Morris, volumes up fivefold

Philip Morris CR as

10/05/2022 11:08

(Adds new analyst comment, trading volume)
    ** Shares in Swedish Match  SWMA.ST  jump 24%, on track for
their best day ever, after the nicotine products maker confirmed
on Monday it was in takeover talks with Marlboro producer
Phillip Morris  PM.N   urn:newsml:reuters.com:*:nL2N2X20CU
    ** The stock tops STOXX 600  .STOXX  and is among the most
traded on the index
    ** According to Wall Street Journal, which first reported on
the potential deal, the acquisition could be valued at $15
billion or more
    ** Transaction value represents a premium of around 25% to
Swedish Match's Monday close price, Jefferies notes
    ** SEB says the acquisition "shouldn't come cheap",
calculating that Swedish Match shares should be worth well above
the estimated SEK 100 per share
    ** Jefferies says that while immediate gain is nothing to
get excited about, the deal makes strategic sense for Phillip
Morris and is about longer-term value creation
    ** Buying the Swedish snus manufacturer "would give PM a
leading smokeless business in both Europe and the US," it adds  
    ** SEB suggests there might be other potential bidders, such
as British American Tobacco  BATS.L , Japan Tobacco  2914.T , or
Swedish Match's old partner Altria  MO.N 
    ** About 14.8 million Swedish Match shares have traded so
far today, about 500% of their 30-day moving average full-day
volume
    ** Phillip Morris stock closed about 1% higher on Monday

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))