* U.S. hedge fund group raises Danisco stake above 10 pct
* Elliott has a 10.02 pct Danisco stake as of May 6
* Elliott slammed DuPont's 1st bid for Danisco as too low
* DuPont shares up 1.4 pct; Danisco up 0.1 percent
(Adds DuPont comment, Elliott declining to comment, NEW YORK
to dateline; updates shares)
COPENHAGEN/NEW YORK, May 6 U.S. hedge fund
Elliott International has raised its Danisco DCO.CO stake
above 10 percent, creating fresh uncertainty about DuPont's
(DD.N) plans to acquire the Danish food additives maker.
Danisco, the food ingredients and enzymes producer, said in
a statement to the Copenhagen stock exchange that Elliott
International had informed it that it held 10.02 percent of
Danisco's shares as of May 6.
That makes Elliott the biggest shareholder in Danisco.
Previously, Danish pension insurance group ATP had been the
biggest shareholder with a 5.1 percent stake, and Elliott only
last month flagged a 5 percent stake when it crossed that
Elliott has been accumulating Danisco stock while at the
same time rejecting U.S. chemicals group DuPont's January cash
bid for Danisco of 665 crowns ($129.6) per share, which DuPont
raised a week ago to 700 crowns, for a total of $6.64 billion.
Opposition by Elliott and some other investors to DuPont's
friendly acquisition led DuPont last week to raise its bid and
extend the offer period to May 13.
Elliott declined to comment.
DuPont declined on Friday to comment on the Elliott stake
increase, but did say it was "encouraged by the strong support
we received after improving the offer and look forward to the
successful completion of the tender on May 13."
DuPont also lowered the acceptance level that it requires
of Danisco shareholders to 80 percent from 90 percent after
owners of 48 percent of Danisco's stock supported the initial
Some analysts have doubts that the 5 percent increase in
DuPont's offer will be enough, but others said earlier this
week that things were going DuPont's way as a number of Danish
institutional investors accepted the bid.
Shares of DuPont were up 1.4 percent to $54.61 in
afternoon trading on the New York Stock Exchange. Shares of
Danisco closed up 0.1 percent in Denmark.
(Reporting by John Acher in Copenhagen and Ernest Scheyder in
New York; Editing by Tim Dobbyn, Greg Mahlich and Will