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DuPont Makes Final Danisco Tender Offer

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DuPont Makes Final Danisco Tender Offer

DuPont Makes Final Danisco Tender Offer
May 03
11:57 2011
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DuPont, the global science group, has increased the price of its tender offer to acquire all of the outstanding shares of Danisco, the enzyme and specialty food ingredients company, by 5% to DKr700 in cash per share. The tender offer period has been extended for the last time to May 13th 2011. DuPont has also announced that it has exercised its right to reduce the minimum number of shares required to be tendered to 80% from 90% in order to close the tender.

Ellen Kullman, chief executive of DuPont.

“These terms represent our best and final offer,” says Ellen Kullman, chief executive of DuPont. “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% 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.”

The board of Danisco has recommended that shareholders accept the improved offer.

DuPont’s initial offer, made last January, was for $5.8b in cash and the assumption of $500m of Danisco net debt. Danisco’s specialty food ingredients business, including enablers, cultures and sweeteners, generates about 65% of group sales. Genencor, its enzymes division, represents 35% of total sales. Danisco and DuPont are already joint venture partners in the development of cellulosic ethanol technology. Danisco has nearly 7,000 employees globally with operations in 23 countries.

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