A US hedge fund has objected to DuPont's $5.8 billion bid for Danisco, a global enzyme and specialty food ingredients company, according to a report from Reuters.

The report said the UK arm of Elliott Associates, the $17 billion U.S. hedge fund owning about 1.2 per cent of Danisco, wrote to Danisco's board saying the 665-crowns-a-share offer was a shameful betrayal of shareholders and was very unlikely to succeed.

The offer ignores Danisco's strong market position, the room to boost margins, and the synergies DuPont will enjoy, and does not offer a premium for control of the company, said the Reuters report quoting Elliott.

According to the report, Danish newspapers quoted Ellen Kullman, DuPont chief executive last week as saying she would not raise the offer and last night she reiterated it was very fair and fully valued.

Both the companies said the bid was the best of several offers and provided the best possible value for shareholders.

Last month, the US chemical giant announced an agreement to acquire Danisco for $5.8 billion in cash and assumption of $500 million of debt. DuPont said the combination would create a world leader in industrial biotechnology.

The offer represented a 25 percent premium to Danisco’s closing share price on January 7.

Jorgen Tandrup, Danisco’s Chairman said last month: We are recommending that shareholders accept the offer from DuPont...the Board believes that the offer price is fair and represents full value for Danisco.

The transaction announced last month is subject to customary closing conditions, including certain regulatory approvals and the tender of more than 90 percent of the Danisco shares in the tender offer.

“Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth,” Kullman had said. “Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and Applied BioSciences.”

Both the companies are already joint venture partners in the development of cellulosic ethanol technology.

Danisco has specialty food ingredients, including enablers, cultures and sweeteners, that generate about 65 percent of total sales; and Genencor, its enzymes division, represents 35 percent of total sales.

Danisco has nearly 7,000 employees globally with operations in 23 countries.