January 10, 2011 / 2:25 PM / 9 years ago

Danish currency firms on Danisco takeover

COPENHAGEN, Jan 10 (Reuters) - The Danish crown firmed slightly on Monday, probably due to demand for the currency linked to U.S. chemicals giant DuPont’s (DD.N) agreed $5.8 billion takeover of Denmark’s Danisco DCO.CO, analysts said.

“Dupont’s bankers may already be in the process of buying crowns,” Nordea analyst Troels Theill Eriksen said.

DuPont’s bid for Danisco is equal to about 36.1 billion Danish crowns, and because 51 percent of Danisco stock is in Danish hands, the U.S. group will need about 18 billion crowns to buy stock from shareholders in Denmark.

The crown firmed to 7.4485 to the euro EURDKK= from Friday closing levels of 7.4489, but retreated to 7.4487 by 1417 GMT.

“This is an amount of a size that will put pressure on EUR/DKK, but, as we see it, it is not enough to get the Nationalbank to cut interest rates,” Danske Bank chief analyst Arne Rasmussen told Reuters.

(For more on the Danisco deal see: [RTRS-DCO.CO].

Reporting by Ole Mikkelsen

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below