Ellen Kullman of DuPont Won't Raise Bid For Danisco
U.S. chemicals group DuPont has no plans to raise its $5.8 billion bid for Danisco, Danish newspapers said, as shareholder pressure for a higher price builds.
After a trip to Denmark on Monday, DuPont Chief Executive Ellen Kullman said the group would not raise the bid above 665 crowns ($122.5) per share for the Danish food ingredients and enzymes producer, Borsen newspaper said.
SEB Asset Management, a unit of Swedish banking group SEB and which owns more than 2% of Danisco, this week become the first large shareholder to reject the bid as too low, a move confirmed by portfolio manager Karsten Sondermolle.
A Danish Shareholders Association (DAF) survey showed two-thirds of Danisco's minority shareholders lean towards rejecting the bid, even though it has been recommended by Danisco's board.
The agreed cash acquisition, in which DuPont will assume $500 million of Danisco debt, was announced on Jan. 9 and the offer runs until Feb. 22.
DuPont would only execute the deal if it won acceptance from at least 90% of Danisco's investors at the current level, Borsen said.
Danisco Chairman Jorgen Tandrup on Jan. 19 defended the bid, telling Reuters it represented "fair value."
