By Ernest Scheyder and John Acher
NEW YORK/COPENHAGEN, April 29 (Reuters) - DuPont raised its offer for Danisco by 5 percent to $6.64 billion on Friday, bowing to pressure from dissident Danisco shareholders who had complained the initial offer was too low.
DuPont Chief Executive Ellen Kullman had aggressively courted Danisco shareholders for weeks to convince them to take the deal. Danisco makes food additives.
A confluence of minority shareholders who insisted on a higher bid led Kullman to tweak the offer.
On Friday, Kullman announced that Danisco's largest shareholder, Danish pension fund group ATP, had signed off on the deal.
'We continue to believe the strategic and financial logic of this acquisition will deliver significant benefits to shareholders, customers and employees of both companies,' Kullman said in a statement.
Danisco chairman Jorgen Tandrup declined to comment.
DuPont raised its offer to 700 crowns per share (US$139.28) from 665 crowns per share.
DuPont also lowered the percentage of Danisco shares it said it would need to close the deal to 80 percent from 90 percent.
To de-list Danisco from Denmark's stock exchange DuPont needs at least 90 percent of Danisco shares.
By saying it now will move forward if only 80 percent of shares tender, DuPont is effectively admitting it will run Danisco as a majority shareholder until it is able to buy 90 percent of shares in the open market.
The tender offer deadline for Danisco shareholders was extended to May 13 from April 29. So far, 48 percent of Danisco shares have been voted in support of the deal, the companies said.
DuPont has extended the offer three times.
Danisco first agreed in January to be acquired by DuPont for $5.9 billion, but the deal met resistance from Danisco shareholders who wanted more money.
Final regulatory approvals were granted last month.
DuPont shares fell 0.3 percent to $56.64 in after-hours trading. Danisco shares closed up 2.1 percent at 668 crowns on Friday, 3 crowns above the bid level, outperforming a 1.1 percent rise in the Copenhagen bourse bluechip index .
($1=5.026 Danish Crown)
(Reporting by Ernest Scheyder and Michael Erman in New York and Ole Mikkelsen and John Acher in Copenhagen) Keywords: DANISCO DUPONT/ (ernest.scheyder@thomsonreuters.com; +1 646-223-6119; Reuters Messaging:ernest.scheyder.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK/COPENHAGEN, April 29 (Reuters) - DuPont raised its offer for Danisco by 5 percent to $6.64 billion on Friday, bowing to pressure from dissident Danisco shareholders who had complained the initial offer was too low.
DuPont Chief Executive Ellen Kullman had aggressively courted Danisco shareholders for weeks to convince them to take the deal. Danisco makes food additives.
A confluence of minority shareholders who insisted on a higher bid led Kullman to tweak the offer.
On Friday, Kullman announced that Danisco's largest shareholder, Danish pension fund group ATP, had signed off on the deal.
'We continue to believe the strategic and financial logic of this acquisition will deliver significant benefits to shareholders, customers and employees of both companies,' Kullman said in a statement.
Danisco chairman Jorgen Tandrup declined to comment.
DuPont raised its offer to 700 crowns per share (US$139.28) from 665 crowns per share.
DuPont also lowered the percentage of Danisco shares it said it would need to close the deal to 80 percent from 90 percent.
To de-list Danisco from Denmark's stock exchange DuPont needs at least 90 percent of Danisco shares.
By saying it now will move forward if only 80 percent of shares tender, DuPont is effectively admitting it will run Danisco as a majority shareholder until it is able to buy 90 percent of shares in the open market.
The tender offer deadline for Danisco shareholders was extended to May 13 from April 29. So far, 48 percent of Danisco shares have been voted in support of the deal, the companies said.
DuPont has extended the offer three times.
Danisco first agreed in January to be acquired by DuPont for $5.9 billion, but the deal met resistance from Danisco shareholders who wanted more money.
Final regulatory approvals were granted last month.
DuPont shares fell 0.3 percent to $56.64 in after-hours trading. Danisco shares closed up 2.1 percent at 668 crowns on Friday, 3 crowns above the bid level, outperforming a 1.1 percent rise in the Copenhagen bourse bluechip index .
($1=5.026 Danish Crown)
(Reporting by Ernest Scheyder and Michael Erman in New York and Ole Mikkelsen and John Acher in Copenhagen) Keywords: DANISCO DUPONT/ (ernest.scheyder@thomsonreuters.com; +1 646-223-6119; Reuters Messaging:ernest.scheyder.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.