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DuPont to Buy Danisco for $6.3 Billion (DD)

By Dividend.com,  January 10, 2011, 08:44:49 AM EDT

Specialty chemicals giant DuPont Company ( DD ) on Monday said it has entered an agreement to buy Danish enzyme and good ingredients maker Danisco for a total of $6.3 billion.

That price tag includes the assumption of $500 million in debt from Danisco. DuPont will pony up $5.8 billion in cash for the industrial biotechnology specialist.

DuPont said it will finance the acquisition with around $3 billion in existing cash, with the remaining $2.8 billion financed with debt. The companies said they expect the transaction to be completed in the second quarter of this year.

DuPont shares fell 75 cents, or 1.5%, in premarket trading Monday.

The Bottom Line
Shares of Dupont ( DD ) have a 3.30% dividend yield, based on Friday's closing stock price of $49.76. The stock has technical support in the $44 price area. If the shares can firm up, we see overhead resistance around the $52-$53 price levels.

DuPont Company ( DD ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: DD



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