(Corrects date in paragraph 3 to May 10 from May 20)
* Stake in Danisco falls back after crossing 5 pct
* Danisco does not specify Barclays Capital's stake
(Releads with stake falling back, adds details, share price)
COPENHAGEN, May 12 The stake that Barclays
Capital Securities holds in Denmark's Danisco DCO.CO, the
takeover target of U.S. group DuPont (DD.N), has fallen back
below the 5 percent level, Danisco said.
Barclays Capital's flagging of such a large position in
Danisco's stock in the final days before DuPont's $6.4 billion
bid for Danisco is due to expire on Friday stoked uncertainty
about the U.S. chemicals group's chances of success.
Danisco said late on Wednesday that Barclays Capital
Securities (BARC.L) held 5.36 percent of its stock on May 9, but
on Thursday Danisco said the holding had fallen back below the 5
percent required flagging level by May 10.
A spokesman for Barclays Capital declined to comment.
Sources familiar with the working of hedge funds said the
stake was probably held on behalf of hedge funds that are
clients of Barclays' prime brokerage business.
Danisco's investor relations chief Michael von Bulow said it
was not known how far Barclays' stake has fallen, only that it
had gone below the 5 percent threshold that triggers a flagging
Barclays was briefly the second-biggest Danisco shareholder
after U.S. hedge fund group Elliott, which flagged a 10.02
percent stake and which in February rejected DuPont's initial
bid of 665 crowns per share for Danisco. [ID:nLDE7451VI]
To break resistance to the deal, DuPont raised its offer to
700 crowns per share on April 29 and lowered the acceptance
level to 80 percent from 90 percent. [ID:nLDE74103W]
Elliott has declined to say if it will accept DuPont's
Danisco's board recommended the deal to shareholders when it
was announced in January and repeated its backing for it after
DuPont raised its offer.
DuPont reaffirmed on May 10 that it was confident it would
succeed in acquiring Danisco. [ID:nLDE7490ZZ]
DuPont has said that "all major Danish institutional
investors" have supported its revised offer which is due to
expire on Friday at 11 p.m. (2100 GMT).
Shares in Danisco traded off 0.1 percent at 693 crowns at
1322 GMT, seven crowns below the bid level.
(Reporting by John Acher; Editing by Dan Lalor; Editing by
($1 = 5.181 Danish crowns)