Chiquita Delays Shareholder Merger Meeting to Allow for New Offers
- by Andrew McDaniel
CHARLOTTE, NC – Chiquita Brands International, Inc. has 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.
Fyffes has granted Chiquita a waiver that permits it to engage in discussions with the Cutrale Group and the Safra Group, according to a press release. Chiquita stated that it has sent a letter to Cutrale/Safra indicating its willingness to offer them the opportunity to conduct focused due diligence and present its final and best offer.
This is a reversal of a letter sent from Chiquita to Cutrale/Safra last month that stated, “After careful consultation with our legal and financial advisors, our Board of Directors has unanimously concluded that the Cutrale Group and the Safra Group's offer of $13.00 per share is inadequate and not in the best interests of Chiquita shareholders. 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 continues to strongly believe in the strategic merits and value provided by the proposed transaction with Fyffes.”
The New York Times reports that this reversal comes only two days after two influential shareholder advisory services recommended that investors vote against the Fyffes deal and suggested that Chiquita entertained the unexpected offer from Cutrale/Safra.
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.”
Stay tuned to AndNowUKnow as we continue to follow this merger and any potential takeover offers.