March 23, 2011

DuPont steadfast on Danisco bid

DuPont said its offer for the Danish company remained "full, fair and firm" as the April 1 deadline for shareholders to accept approaches.

DuPont extended the acceptance period last month as it struggled to secure the 90% approval required from Danisco shareholders for the deal to go ahead.

Some investors seized on Thursday's (Mar 17) forecast-beating third-quarter earnings and increased full-year guidance to bolster the case for a higher price.

However, Ellen Kullman, DuPont chief executive, said the results were consistent with expectations, and noted there had been no change in the company's long-term outlook, upon which the offer was based.

Other people close to DuPont insisted there was "zero appetite" for a higher offer, particularly as unrest in the Arab world and the disaster in Japan had increased economic uncertainty since the bid was launched in January.

Danisco said it had not received any approaches from other potential bidders and reiterated its board's support for the offer.

Danisco reported third-quarter net profits to January 31 of DKK310 million (US$58.9 million), compared with a DKK354 million (US$67.3 million) loss a year ago. Revenues rose 18% to DKK3.9 billion (US$0.74 billion).