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EI DuPont de Nemours & Co. (DD) successfully completed its tender offer for all outstanding shares of Danisco, which attained 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 krones, or $132.60 each, in a deal that expired on May 13. All conditions for completing the offer have now been fulfilled.

Danisco makes dietary supplements that strengthen bones, reduce LDL cholesterol levels and relieve bloated bowels. It also engineers enzymes used for making beer and has a large biofuels business.

It is believed that the combination of the two companies will create an industry leader in industrial biosciences and nutrition and health.

DuPont raised its initial bid to 700 krone from 665 krone 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.

Last month, DuPont announced its first-quarter results and increased its full-year 2011 earnings guidance to a range of $3.65 to $3.85 per share from the previous range of $3.45 to $3.75 per share, excluding the impact of Danisco.

First-quarter earnings increased to $1.43 billion or $1.52 per share compared with $1.13 billion or $1.24 per share in the prior year.

DuPont is a global chemical and life sciences company, employing more than 60,000 people worldwide with a diverse array of product offerings. With over 21,000 patents and 15,000 patent applications worldwide, DuPont sells its products in diverse markets such as transportation, construction, apparel, agriculture, nutrition and health, packaging and electronics markets.

DuPont faces stiff competition from The Dow Chemical Company (DOW).

The company currently retains a Zacks #2 Rank on the stock, which translates into a short-term “Buy” rating. In addition, we reiterate our “Outperform” recommendation on the stock for the long term

 
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