Banana giant Chiquita rejects Brazilian takeover bid

August 14, 2014

NEW YORK – Banana giant Chiquita rejected Thursday the takeover bid by Brazil’s Cutrale and Safra groups, calling their offer “inadequate” and sticking to its plan to merge with European fruit seller Fyffes.

The board of Chiquita Brands International turned down the $13 a share, $611 million cash offer for all of its stock made Monday by Cutrale, a global power in orange juice and other fruit juices, and Safra, the wealthy Brazilian investment bank.

The offer “is inadequate and not in the best interests of Chiquita shareholders,” the board said. “Having made such a determination, Chiquita has determined not to furnish information to, and have discussions and negotiations with, the Cutrale Group and the Safra Group at this time.”

The board said it would continue to back the merger with Fyffes, which would create the world’s largest banana purveyor, with $4.6 billion in annual revenues.

That all-stock deal, announced in March, would allow Chiquita to avoid higher U.S. taxes by relocating its statutory headquarters to Ireland, a so-called tax inversion.

Chiquita shareholders are slated to meet and vote on the merger in a special meeting on Sept. 17.

But the board’s rejection Thursday appeared to leave the door open for a better offer from the two Brazilian suitors.

The two companies had argued that theirs was a better deal for shareholders, who have sold off Chiquita shares in the wake of strong comments by U.S. President Barack Obama and other top officials against tax inversions like that which Chiquita is planning.

Down about 17 percent since the Fyffes merger was announced, Chiquita shares jumped more than 30 percent Monday on the Cutrale-Safra offer.

Since then they have traded above $13, suggesting investors expect a better offer.

In after-hours trade Thursday, following the board’s rejection, the shares were at $13.50, barely changed from the day’s official close.

Facebook Comments

You may be interested

The Tico Times Weekly Digest: Oct. 15, 2018
Tico Times Weekly Digest
604 views
Tico Times Weekly Digest
604 views

The Tico Times Weekly Digest: Oct. 15, 2018

The Tico Times - October 15, 2018

In this week's episode of the Weekly Digest, a wrap-up of last week's heavy rains, plus more news from around…

Guatemala Fuego eruption is over: officials
Guatemala
683 views
Guatemala
683 views

Guatemala Fuego eruption is over: officials

AFP - October 15, 2018

The most recent eruption of Guatemala's Fuego volcano ended Saturday, an official source said, with locals escaping a repeat of June's…

October in Costa Rica: when the Caribbean comes a’callin’
Pic of the Day
1022 views
Pic of the Day
1022 views

October in Costa Rica: when the Caribbean comes a’callin’

The Tico Times - October 15, 2018

Costa Rica's Caribbean coast is famously exempt from many of the typical weather patterns in the rest of the country.…