Danish managed hedge fund takes over Swedish tobacco company

Date: Thursday, May 24, 2007
Author: Nordic News

Parvus, a London-based hedge fund managed by Dane Mads Eg Gensmann, has taken over power in the Swedish tobacco company Swedish Match. The fund is now the major stock holder with a total 9.9% of shares.

Once again, an activist hedge fund has sent noticeable waves through the Swedish financial industry. It is the London-based hedge fund Parvus, managed by Danish hedge fund manager Mads Eg Gensmann.

Parvus bought 13 million shares in the Swedish tobacco company on Monday, making it the major stock holder with 9.9% of shares or 26.3 million shares at a value of 3.2 billion SEK.

Up until Monday, the hedge fund Wellington was the largest owner. Both hedge funds want Swedish Match to increase its debts in order to pay out more money to the stockholders.

Another factor behind the purchases by the two hedge funds is persistent acquisition rumours surrounding Swedish Match, Dagens Industri reports.

Parvus has for a while been engaging in a series of activist investments along with Swede Christer Gardell’s Cevian Capital.