Swedish Match AB stocks rose after reports that the company may be a possible takeover target. Shares for the maker of smokeless tobacco products climbed as much as 2.5% which is the biggest intraday advance since late June. Stocks for Swedish Match traded at 18% higher at 246.80 kronor basing the result on the number of shares traded at 62% for the three month daily average in Stockholm.
The Imperial Tobacco Group Plc (IMT), Europe's second-biggest tobacco company, is dubbed as the top contender for the 350 kronor-per-share-bid for the Swedish Match shares. To date, Swedish Match and Imperial Tobacco officials are not making any comments on the transaction.
Due to the stricter government restrictions on cigarettes which is hurting the tobacco industry, companies like Swedish Match are pushed to develop more smokeless products for the market. Swedish Match is the world's biggest maker of a moist powder tobacco called snus. They are also the makers of products like the Longhorn snuff and Red Man chewing tobacco.
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