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To: Bucky Katt who wrote (39895)	1/10/2011 7:08:12 AM
From: Bucky Katt	Read Replies (1) \| Respond to of 48461

DD news> DuPont to acquire Danisco. DuPont enters into a definitive $6.3 billion agreement to buy food-ingredients group Danisco. Shares in the Danish firm surge nearly 30%. Danisco produces specialty food ingredients such as emulsifiers and sweeteners, and also has a large enzymes business, with customers in the textiles, biofuels and biodefense industries. DuPont said the business will be a close fit with its own nutrition and applied biosciences divisions. Laurence Alexander, an analyst at Jefferies & Co., said in a note to clients that DuPont has been more vocal about the opportunities in industrial biotechnology than any other large North American company. He added that the food ingredients division will fill in gaps in DuPont’s “farm to fork” strategy. Shares of Danisco rallied around 26% in Copenhagen to 668 kroner ($115.7), marginally above the offer price of 665 kroner. SEB Enskilda analyst Henrik Simonsen said that, while another bidder can’t be ruled out, DuPont is the most likely buyer because it already operates an ethanol joint venture with Danisco. DuPont said it will finance the deal with about $3 billion in existing cash, with the remainder coming in debt. The deal is expected to close early in the second quarter and will provide a lift to earnings in 2012. For 2011, the acquisition is likely to reduce reported earnings by between 30 cents and 45 cents a share, DuPont said. The chemicals group had previously forecast 2011 earnings of between $3.30 and $3.60 a share. “This transaction is a perfect strategic fit with our growth opportunities and will help us solve global challenges presented by dramatic population growth in the decades to come, specifically related to food and energy,” said DuPont CEO Ellen Kullman in a statement. “In addition, biotechnology and specialty food ingredients have the potential to change the landscape of industries, such as substituting renewable materials for fossil fuel processes and addressing food needs in developing economies,” Kullman added