NEW YORK — In an effort to entice shareholders of its Canadian unit to part with their holdings, DuPont on Monday upped its offer for the shares of DuPont Canada it does not own.
This story first appeared in the June 3, 2003 issue of WWD. Subscribe Today.
Acquiring the 24 percent stake in DuPont Canada that the Wilmington, Del.-based parent company does not already own is one of the pieces of financial housekeeping DuPont wants to complete before selling or spinning off its DuPont Textiles & Interiors unit by the end of the year, as reported.
DuPont raised its offering price to $21.75 a share and extended the period during which it will buy those shares to June 16. The previous offer was for $21 a share. This also marks the second extension of the offer period, which was originally to end May 23 and was extended to June 9.
In a statement, John P. Jessup, DuPont’s vice president and treasurer, said the revised offer was “final.”
“Whatever the outcome of the tender offer, we will proceed with our previously announced separation of DTI on the current timetable,” Jessup said.
DuPont has acknowledged it is in talks with a third party it did not identify about the sale. According to sources, that party is Wichita, Kan.-based Koch Industries Inc., though DuPont and Koch officials have declined to comment.
DuPont, which owned 76 percent of the outstanding DuPont Canada stock prior to making the offer, said so far shareholders have tendered shares representing 5.5 percent of the outstanding shares, which would boost its stake to about 81.6 percent. The company also lowered the targeted minimum number of shares it wants to buy through the offering to a level that would bring its total holdings to 88 percent of outstanding shares, down from the earlier targeted minimum of 97.6 percent of outstanding shares.
DuPont Canada includes nylon operations that DuPont wants to merge into DTI prior to selling it.