DuPont acquires Danish food ingredient maker Danisco
16 May 2011
DuPont announced today that it has won a five-month fight for the Danish food ingredient maker Danisco. Its $6.3 billion tender offer was approved by over 92 per cent of shareholders.
According to the company, it had acquired 92.2 per cent of all Danisco shares, at 700 Danish kroner apiece. According to analysts, Du Pont will now proceed to delist Danisco stock and squeeze out the remaining shareholders.
"We are delighted that the tender has been successful and we can move on to the process of integrating Danisco," Ellen Kullman, DuPont's chairwoman and chief executive, said in a statement. "This combination will create an industry leader in industrial biosciences and nutrition and health."
The company had been battling some Danisco shareholders that included activist hedge fund Elliott Advisors and the largest Danish pension fund ATP over the price, following the announcement of the deal in January.
In January, DuPont Inc agreed to buy Danish food ingredients giant Danisco AS for $5.8 billion in cash bid, to emerge a global leader in the food and biofuels business.
In February, Elliott Advisors and other shareholders demanded that DuPont raise its $5.8 billion bid. Elliott, holding 1.2 per cent stake in Danisco, urged the board to reject DuPont's undervalued 665-crowns-a-share offer and said that the proposed sale was a "shameful betrayal" of shareholders.
