DuPont raises offer for Danisco

AP News
Posted: Apr 29, 2011 6:42 PM
DuPont raises offer for Danisco

DuPont raised its $5.8 billion offer for Danish food-additives maker Danisco by about 5.3 percent in what it called a best and final proposal.

DuPont said Friday it was offering 700 Danish kroner ($139.12) per share for Danisco, and extending the offer period for the last time to May 13.

The Delaware-based chemical company also said it was exercising its right to require 80 percent of shares tendered to go through with the deal, down from 90 percent.

DuPont offered 665 Danish kroner in January and had extended the offer since then.

At the end of the business day Friday, shareholders had tendered about 48 percent of Danisco shares, DuPont said.

Earlier Friday, Danisco announced that U.S. hedge fund group Elliott, which called the original offer too low, had raised its stake in the company to about 5 percent.

A spokesman for the hedge fund group, Scott Tagliarino, said the group had no comment on the new offer.

DuPont Chair and CEO Ellen Kullman said terms of the new offer were supported by "the positive outlook and strong recent performances of both companies." Kullman said if the offer is not approved by the deadline, DuPont will "explore other paths for achieving the benefits that Danisco would have offered us."

Danisco would broaden DuPont's food products as the world's population and demand for food grows. Danisco's compounds are used to improve taste and extend shelf life in baked goods, beverages, animal feed and other products. The companies already have a partnership to develop ethanol technology.

E.I. DuPont de Nemours & Co. has been diversifying into new product areas in recent years.