CHARLOTTE, NC – Chiquita Brands International, Inc. announced today that it has signed a confidentiality agreement with private Brazilian companies Cutrale Group and the Safra Group (Cutrale/Safra).
Chiquita has agreed to allow Cutrale/Safra to conduct due diligence and access its data room and its management team. Cutrale/Safra said that it will use its best efforts to complete its due diligence and present its definitive offer as quickly as it can, according to a release from Chiquita.
This announcement comes after Chiquita postponed its Special Meeting of Shareholders in order to allow time for more beneficial offers. The meeting, originally scheduled for September 17 where shareholders were going to vote on the proposed merger with Fyffes, will now be held on October 3, 2014.
The New York Times reports that Chiquita resisted Cutrale/Safra’s initial $611 million offer in favor of completing its deal with Fyffes. This changed after two influential shareholder advisory services recommended that investors vote against the Fyffes deal and suggested that Chiquita should entertain the unexpected offer from Cutrale/Safra.
With Chiquita in talks with Cutrale/Safra, what could this mean for the Fyffes merger?
For now, Chiquita says in a release that it does not expect to update the market with any further information “unless and until the Board has reached a decision on a definitive course of action. In the interim, Chiquita continues to recommend that its shareholders vote “FOR” the Fyffes transaction and the other proposals on the WHITE proxy card.”
As of 4:01 pm ET on Wednesday, Chiquita’s shares rose $0.15 for an increase of 1.09%.
For more information on the Chiquita and Fyffes merger and Cutrale/Safra’s offer, check out our previous articles by clicking here and here.
Stay tuned to AndNowUKnow as we continue to follow this merger and any potential takeover offers.
