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DuPont Would Integrate Danisco With 80% Of Shares

04.05.2011 -

DuPont plans to integrate Danisco even if it does not get enough shares to de-list the food additives maker from Denmark's stock exchange. The U.S. chemicals maker needs at least 90% of Danisco shares to take Danisco offer the exchange and close the recently sweetened $6.4 billion deal.

It has aggressively pursued Danisco since an initial offer was made in January as part of a bigger push into the foods business. Last week, DuPont raised its bid 5% and said it would still be interested in Danisco if only 80% of Danisco shares are tendered.

That would mean DuPont would run the public company as a majority shareholder for an unknown period of time.

"The longer-term view would obviously be to look to continue to drive to that 90% level, so that a squeeze-out could then occur and allow for ultimate de-listing," DuPont Chief Financial Officer Nick Fanandakis told Reuters.

Fanandakis would not say what percentage of Danisco shares have accepted the latest offer.

There is "much more momentum building toward this offer compared with what was there prior," he did say.

'More Full and Firm and Fair'
Fanandakis and DuPont Chief Executive Ellen Kullman had repeatedly said their initial $5.9 billion offer was "full and fair and firm."

They had threatened to walk if Danisco shareholders did not accept the deal. Yet on Friday DuPont bowed to intense pressure to raise the bid.

The previous offer "was firm until we saw that that got us 48% of the shares being tendered," Fanandakis said. "This offer is certainly that much more full and firm and fair. That is the final offer and tender in place," he said. "If it gets accepted, great, we move forward. If it doesn't, the tender offer will" end.