Danish sugar and ingredients group Danisco is reported to be considering making a pitch for Quest, the flavour and fragrance division of Imperial Chemicals Industries (ICI) of the UK.

Danisco has already stated that it is conducting a study of all potential takeover candidates in the area of enzymes and flavours, and has made it known it has a war chest of some €10bn (US$1.098bn) to invest in expanding its core operations.

Late March this year ICI said that a drop in sales and a rise in raw material costs would result in a 24% year-on-year decline in profits at Quest to £50m ($50m). This prompted speculation that Quest could become a takeover target, reported Jyllands-Posten.