DuPont raises offer price for Danisco to $6.64 billion

30 Apr 2011

DuPont has announced a hike in the tender offer to acquire all of the outstanding shares of Danisco by 5 per cent to $6.64 billion. DuPont raised its offer to 700 Danish crowns per share ($139.28) from 665 crowns per share.

DuPont's wholly owned subsidiary, DuPont Denmark Holding ApS, announced the increase in the tender offer on Friday.

DuPont also announced that it has exercised its right to reduce the minimum number of shares required to be tendered to 80 per cent from 90 per cent in order to close the tender.

The increase comes after some Danisco shareholders sought an increase in the revised offer, which, they said, also fell far too short of the stocks real value.

"These terms represent our best and final offer," said DuPont chair and CEO Ellen Kullman. "This increase in the offer price and reduced minimum tender requirement will allow shareholders to tender with confidence, given the premium value and certainty of this offer. We believe the positive outlook and strong recent performances of both companies support these final terms and we remain confident this will bring the transaction to a successful and swift conclusion.

"We continue to believe the strategic and financial logic of this acquisition will deliver significant benefits to shareholders, customers and employees of both companies. However, unless 80 per cent of Danisco shares are tendered by the May 13 deadline, we will end our offer, continue executing DuPont's successful growth strategy, and explore other paths for achieving the benefits that Danisco would have offered us," Kullman noted.