DuPont Extends $6.1 Billion Danisco Bid to April 1
U.S. chemicals group DuPont extended its 33.4 billion crown ($6.1 billion) offer for Danish food and enzymes group Danisco to April 1, hoping to gain more acceptances as regulators clear the deal.
The 665-crowns-per-share offer announced Jan. 9 was set to expire next Tuesday, with DuPont saying it required acceptances from shareholders with at least 90 percent of the stock to carry out the deal.
DuPont said on Friday only 5% of shareholders had accepted, adding most do not do so until all regulatory approvals are obtained. Some approvals are still pending.
However, financial analysis firm Aktieinfo's chief analyst Lau Svenssen said the 5% acceptance did not bode well.
"It does not indicate small problems, but big problems," Svenssen said, adding he expected DuPont to raise its bid -- something the U.S. company has repeatedly said it will not do.
Competition approval has been obtained in the U.S., and DuPont said it expected approvals in China and the EU.
If all competition approvals have not been obtained by April 1, the offer will be extended to April 29, DuPont said, adding it still expected to complete the deal in the second quarter.
