(Alliance News) - Philip Morris International Inc on Wednesday said it has bought a 23% stake in Vectura Group PLC in market purchases, ahead of a vote by Vectura shareholders on whether to approve the tobacco firm's controversial takeover.
Lausanne, Switzerland-based Philip Morris bought the shares for 165 pence each - the price it agreed to pay for Vectura - and plans to buy more, appealing for institutional shareholders to sell their stakes.
Shares in Vectura were up 0.4% to 164.60 pence in London on Wednesday morning.
Philip Morris agreed to buy Vectura, which makes inhalers for pharmaceutical firms for GBP1.02 billion after a bidding war with private equity firm Carlyle. The Marlboro cigarette maker said the acquisition fits its "natural evolution into a broader healthcare and wellness company."
But the deal is controversial, with charities Asthma UK and the British Lung Foundation calling for Vectura shareholders to reject it. "Tobacco companies should not profit from treating the illnesses their products cause," they said in an open letter published on Wednesday.
By Ivan Edwards; ivanedwards@alliancenews.com
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