The stake that Barclays Capital Securities holds in Denmark's Danisco, the takeover target of U.S. group DuPont, has fallen back below the 5% level, Danisco said. Barclays Capital's flagging of such a large position in Danisco's stock in the final days before DuPont's $6.4 billion bid for Danisco is due to expire on Friday stoked uncertainty about the U.S. chemicals group's chances of success.

Danisco said late on Wednesday that Barclays Capital Securities held 5.36% of its stock on May 9, but on Thursday Danisco said the holding had fallen back below the 5% required flagging level by May 20.

A spokesman for Barclays Capital declined to comment.

Sources familiar with the working of hedge funds said the stake was probably held on behalf of hedge funds that are clients of Barclays' prime brokerage business.

Danisco's investor relations chief Michael von Bulow said it was not known how far Barclays' stake has fallen, only that it had gone below the 5% threshold that triggers a flagging obligation.

Barclays was briefly the second-biggest Danisco shareholder after U.S. hedge fund group Elliott, which flagged a 10.02% stake and which in February rejected DuPont's initial bid of 665 crowns per share for Danisco.

To break resistance to the deal, DuPont raised its offer to 700 crowns per share on April 29 and lowered the acceptance level to 80% from 90%.
Elliott has declined to say if it will accept DuPont's improved offer.

Danisco's board recommended the deal to shareholders when it was announced in January and repeated its backing for it after DuPont raised its offer.

DuPont reaffirmed on May 10 that it was confident it would succeed in acquiring Danisco. DuPont has said that "all major Danish institutional investors" have supported its revised offer which is due to expire on Friday at 11 p.m.