DuPont Extends $6 Billion Bid Deadline for Danisco
DuPont is offering 665 Danish kroner ($125.67) for each share of Danisco, a 58.7 percent premium to the company’s average trading price in the 12 months before the bid. So far only 6 per cent of Danisco shares have been tendered to DuPont.
3/31/2011 --- DuPont has announced that its wholly owned subsidiary DuPont Denmark Holding ApS is extending the tender offer period relating to its proposed $6 billion acquisition of Danisco A/S shares. So far only 6 per cent of Danisco shares have been tendered to DuPont, far below the 90 per cent acceptance level set by the US group as a condition for closing the deal.
DuPont said that the extension provides additional time to secure the necessary approvals from the competition authorities in the European Union (EU) and China. As required by Danish regulations, the new offer period is extended four weeks and will end on April 29, 2011, at 11 p.m. CEST (5 p.m. EDT), unless further extended as described in the offer document. All other terms and conditions of the tender offer remain unchanged. The offer is proceeding toward an early second quarter closing, DuPont claimed.
"We believe Danisco shareholders are recognizing that our offer is full, fair and firm and, moreover, it is the best offer available and provides certainty to shareholders. We continue to make good progress on the necessary regulatory approvals and we look forward to completing the tender process promptly once regulatory approvals are received," said DuPont Chair and CEO Ellen Kullman.
Competition approval has already been obtained in the United States and competition approvals in the EU and in China continue to make progress.
As previously stated in the offer document, the offer price represents a premium of 58.7 percent compared to the average price of Danisco's shares in the 12 months prior to the announcement of the acquisition agreement, a premium of 32.5 percent compared to the average price during the last month prior to the announcement, and a premium of 25.5 percent compared to closing price on the last trading day prior to the Jan. 9 tender offer announcement.
DuPont estimates that, as of the close of business on March 29, Danisco shareholders had tendered approximately 6 percent of the outstanding shares to DuPont Denmark Holding ApS. The estimated acceptance level to date is consistent with similar past voluntary tender offers in Denmark at this stage of the offer, accoridng to DuPont.
DuPont is offering 665 Danish kroner ($125.67) for each share of Danisco, a 58.7 percent premium to the company’s average trading price in the 12 months before the bid.
