22 July, 2008 - Danisco shares climbed almost 11% yesterday despite the company denying reports of an imminent takeover bid from private equity firm Apax Partners Worldwide LLP.
The boost in shares in the Danish food ingredient giant was biggest for any firm on the Copenhagen exchange since 1989. The increased trading activity, which saw the shares jump by 31 kroner to 313.5 kroner, followed a report in the Danish financial media that the private equity outfit may make an offer.
Thomas Knutzen, Danisco CEO, said no offer had been made.
“If we'd received any approaches, we'd of course have to have reported these. I know how such rumours tend to escalate in the summer heat,” Mr Knutzen was reported as saying.
He added the company would concentrate on organic growth rather than look to make big acquisitions.
Before yesterday’s gains, Danisco’s stock had plummeted 25% in 2008, leaving it vulnerable to a takeover. An Apax spokesman declined to comment on the matter.
Danisco’s major shareholder, pension fund ATP said it had not received any offers to sell its stake.
Last week, Danisco agreed to sell its sugar division to Nordzucker AG for 5.6 billion kroner (EUR750 million) leaving it free to concentrate on food ingredients such as enzymes.