24 March 2003 00:00 [Source: ICB Americas]DuPont is offering to acquire the 24 percent of DuPont Canada it does not already own for C$21 per share, or C$1.4 billion ($940 million), a 22 percent premium over the C$17.24 DuPont Canada was trading at before the announcement. The offer has the support of DuPont Canada's board of directors.
The acquisition of DuPont Canada's minority owned shares is part of DuPont's plan to separate its fibers business, DuPont Textiles & Interiors (DTI), by the end of 2003. DTI comprises a large portion of DuPont Canada.
In the event that the offer is not successful, DuPont plans to transfer its 76 percent stake in DuPont Canada to DTI in connection with the separation.
TD Securities, DuPont Canada's financial adviser on the transaction, determined a fair value of between C$20 to C$23 per share for DuPont Canada.
The takeover bid is conditional upon the tendering of at least 90 percent of the shares of DuPont Canada not owned by DuPont. Merrill Lynch and BMO Nesbitt Burns are advising DuPont in the transaction.
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