DuPont’s Danisco bid rejected by US shareholder
US chemical company DuPont’s bid for Danish enzymes and food ingredients firm Danisco is too low, according to US shareholder Elliott Associates, Danish daily Borsen reports.
The shareholder, a New York-based hedge fund, criticizes Danisco’s board for recommending the bid.
Elliott Associates wants a higher price for Danisco or to keep Danisco as an independent company, Borsen writes, citing a letter Elliott Associates sent to Danisco’s board.
Elliott Associates controls about 1.25% of the Danisco shares, according to Borsen, making it one of the largest shareholders in the company.
DuPont has offered DKK665 (€89.17 or $120.90) a share for the Danish food ingredients company. According to Borsen, several large hedge funds have bought Danisco shares amid speculation that DuPont will raise its bid.
Luke warm
A portfolio manager at Danske Capital said on Friday that he was "not impressed" with DuPont’s $5.8 billion bid for Danisco.
Danske Capital, a unit of Danske Bank, controls 1.68% of Danisco’s shares. Its unenthusiastic attitude towards the DuPont bid comes amid increasing signs of dissatisfication among Danisco investors.
"We are not impressed with the bid, but on the other hand it is not a completely unacceptable offer," Danske Capital portfolio manger Jesper Poll told Reuters.
"I cannot say what we will end up doing, but I am lukewarm (towards the bid)," Poll said.
Related item: Dupont to purchase Dansico for $5.8 billion
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