DuPont Bags Danisco for $6.4B

DuPont (NYSE:DD) said on Monday that it successfully competed its tender offer for all outstanding shares of Danisco, attaining approval for its $6.4 billion offer from shareholders holding 92.2% of the Danish food-ingredients company.

The shares were tendered through DuPont’s wholly owned subsidiary DuPont Denmark for 700 Danish crowns, or $132.60, each, in a deal that expired on Friday. DuPont said that all conditions for completing the offer have now been fulfilled.

“We are delighted that the tender has been successful and we can move on to the process of integrating Danisco into DuPont,” DuPont CEO Ellen Kullman said in a statement, noting the combination of the two companies “will create an industry leader in industrial biosciences and nutrition and health.”

The U.S. chemicals group raised its initial bid to 700 crowns from 665 crowns last month and lowered the level of acceptance needed from Danisco shareholders to 80% from 90% after facing resistance, particularly from several hedge funds, to the original offer made in January.

DuPont extended the initial bid period twice while seeking regulatory approvals but acceptance levels remained low, ultimately forcing DuPont to raise the offer.

Settlement of valid acceptance will take place on May 19 and DuPont said it will initiate a compulsory redemption of all remaining Danisco shares and apply for them to be delisted from the NASDAQ OMX Copenhagen as soon as possible.

The company estimates both will take place in June.