Tags: Chiquita | ISS | Fyffes | takeover

Chiquita Shareholders Advised by ISS to Reject Fyffes Takeover

Friday, 05 Sep 2014 11:58 AM

Chiquita Brands International Inc. shareholders should reject the banana producer’s proposed Fyffes Plc takeover to pursue a bid from Cutrale and Safra groups, according to proxy advisory firm Institutional Investor Services Inc.

Voting to adjourn the Sept. 17 shareholders meeting “appears to be the most robust option” for Charlotte, North Carolina-based Chiquita to realize higher value from an alternate transaction proposed by the Cutrale and Safra groups, ISS said in an e-mailed report today. Investors appear to have lost enthusiasm for the Fyffes transaction, as evidenced by a drop in the shares of the companies, ISS said.

Fyffes shares have fallen 26 percent since March 10, the day the Chiquita takoever was announced and Chiquita tumbled 16 percent between March 10 and Aug. 8., the last trading day before the Cutrale-Safra offer was made public. Cutrale and Safra on Aug. 11 offered to acquire Chiquita for $13 a share in cash, compared with a Chiquita market value of about $10 prior to the offer, ISS said.

“There is no risk, only upside, to the Chiquita board engaging with Cutrale-Safra,” the Brazilian groups said in a separate statement today.

Cutrale, a closely held juice maker controlled by Brazil’s Jose Luis Cutrale, is partnering with banks owned by Joseph Safra, the country’s second-richest man, to breakup the Fyffes deal so they can buy Chiquita. Chiquita’s board has said the Cutrale-Safra offer is “inadequate.” The acquisition of Fyffes would create the world’s largest banana company.

Chiquita rose 0.5 percent to $13.78 as of 10:28 a.m. in New York. Dublin-based Fyffes fell 6.6 percent to 96 euro cents in the Irish capital.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
Chiquita Brands shareholders should reject the banana producer's proposed Fyffes takeover to pursue a bid from Cutrale and Safra groups, according to proxy advisory firm Institutional Investor Services.
Chiquita, ISS, Fyffes, takeover
268
2014-58-05
Friday, 05 Sep 2014 11:58 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved