Chiquita Rejects Cutrale-Safra New $658 Million Takeover Bid
- by Kyle Braver
CHARLOTTE, NC – Chiquita Brands International has announced that it will reject Cutrale/Safra’s latest offer.
As we previously reported, the Cutrale/Safra Group, which has been the main competition to Chiquita's proposed merger agreement with Fyffes, upped its buyout offer to $14/share for all of the company's outstanding stock.
In a letter to Cutrale/Safra, Chiquita said that its Board of Directors has unanimously determined that the revised offer to acquire all the outstanding stock of Chiquita for $14.00 per share in cash is inadequate and not in the best interest of Chiquita shareholders.
The letter stated, “The Board continues to strongly believe in the strategic merits and value provided by the revised ChiquitaFyffes transaction, given the revised exchange ratio. With updated projections, revised synergy estimates and receipt of all necessary regulatory approvals, we believe the Fyffes transaction is meaningfully more valuable for Chiquita shareholders.”
The letter also noted Chiquita’s disappointment that Curale/Safra declined its recent invitation to work together and improve the offer.
The company stated in a press release that the ChiquitaFyffes transaction maintains shareholders' ability to realize significantly greater value than $14.00 per share, without losing any control premium that shareholders may receive in the future and is a better offer. It suggested that shareholders vote for the Fyffes merger.
Stay tuned to AndNowUKnow as we continue to bring you the latest on any Chiquita merger updates.