Bullish options flow was detected in DD stock on December 9, 2019.

Bullish options flow detected in DD stock on December 9, 2019.

On December 8, 2019, Bloomberg reports that International Flavors & Fragrances (IFF) has emerged as a strong contender to purchase DuPont’s (DD) nutrition division, which could be valued at $25B, Nabila Ahmed, Ed Hammond and Dinesh Nair of Bloomberg report, citing people with knowledge of the matter. International Flavors and Ireland’s Kerry Group (KRYAY) are both negotiating with DuPont and a deal could be reached by year-end, Bloomberg added, citing sources. The transaction will create a new company comprised of the winner bidder’s assets and DuPont’s nutrition business that will be spun off to existing investors via a Reverse Morris Trust, and DuPont shareholders will emerge with a significant stake in the business, the people told Bloomberg. Source: Bloomberg

Following Bloomberg’s report yesterday that International Flavors & Fragrances (IFF) is one of the bidders for DuPont’s (DD) nutrition division, Stifel analyst Mark Astrachan said he understands if investors question if management has “earned’ the right to make a sizable acquisition after Frutarom’s underperformance. However, he believes buying the business would put IF&F at a strategic advantage compared peers, while not being the buyer “would similarly disadvantage the company,” Astrachan tells investors. Such a deal would make International Flavors the largest global specialty ingredients company and allow it to offer a more complete product suite to a broader customer base, said Astrachan. He raised his price target on IF&F shares to $135 from $125 to reflect a higher multiple given the favorable strategic merits of the talked-about deal, though the analyst said he would likely revisit his price target should such a deal not be completed. Astrachan keeps a Hold rating on International Flavors shares.

On December 6, 2019, Vertical Research upgraded DuPont to Buy from Hold.

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