Danisco board recommends raised $6.64 billion DuPont bid
COPENHAGEN (Reuters) - Danish food ingredients and enzymes maker Danisco's <DCO.CO> board of directors on Monday unanimously recommended that Danisco shareholders accept U.S. chemicals group DuPont's <DD.N> improved offer for Danisco.
Late on Friday, DuPont raised its offer for Danisco by 5 percent to 700 Danish crowns ($139) per share from 665, making its cash offer worth $6.64 billion in an effort to persuade reluctant Danisco shareholders to accept the deal announced in January.
DuPont also lowered the acceptance level that it requires of Danisco shareholders to 80 percent from 90 percent and extended the offer period to May 13.
The Danisco board, which had endorsed the deal with DuPont at 665 crowns per share in January, told shareholders on Monday to accept the raised offer.
"The board confirms that it believes that the increased offer price represents compelling value for the shareholders of Danisco and reiterates its unanimous recommendation to shareholders to accept the offer before May 13, 2011, when the offer period expires," Danisco said in a statement.
The board also noted that DuPont can only make one single improvement to the offer, so the new bid is final.
Danisco shares closed at 668 crowns on Friday before DuPont announced the increased offer. Trade on the Copenhagen bourse resumes at 0700 GMT. (Editing by Lincoln Feast)