(Alliance News) - Philip Morris International Inc on Thursday said it has increased its stake in takeover target Vectura Group PLC to 29%, as it called a halt to any more market purchases.
The Lausanne, Switzerland-based cigarette maker on Wednesday disclosed a 23% stake in Vectura, and appealed for institutional Vectura shareholders to sell their holdings to Philip Morris.
Philip Morris, who has now bought a further 39.3 million Vectura shares for 165 pence each, said it "does not currently intend to make any further market purchases."
Chippenham, Wiltshire-based inhaler maker Vectura has already accepted Philip Morris's 165p-per-share takeover offer. However, the deal still requires approval from shareholders.
Three of Vectura's largest investors owning 11% between them - Axa Investment Managers, TIG Advisers and Berry Street Capital Management - publicly backed a rival bid from Carlyle Group Inc.
Meanwhile, health charities have warned against the acquisition of a healthcare company by a tobacco firm.
Shares in Vectura were little changed at 163.63 pence in London on Thursday morning. Philip Morris fell 1.5% to USD100.95 in New York on Wednesday.
By Ivan Edwards; ivanedwards@alliancenews.com
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