10th Sep 2014 14:29
LONDON (Alliance News) - Chiquita Brands International Inc's merger with banana producer Fyffes PLC took another twist Wednesday after it said it had signed a confidentiality agreement with rival bidders the Cutrale Group and the Safra Group.
Under the agreement, which Chiquita said was similar to its agreement with Fyffes, Chiquita will allow Cutrale/Safra to conduct due diligence, which includes giving access to a data room and its management team, so that they can make a definitive offer for Chiquita.
Despite this, Chiquita reiterated its recommendation that shareholders vote in favour of the Fyffes transaction. Both Fyffes and Chiquita have postponed their shareholder meetings to vote on the proposed transaction to October 3.
Cutrale and Safra had made a USD625 million rival takeover offer for Chiquita, however, Chiquita rejected this offer saying it was "inadequate and not in the best interests of shareholders."
Following this, Cutrale and Safra said they would go direct to Chiquita shareholders to urge them to vote against the proposed Fyffes merger, saying its proposal will give the shareholders greater financial value and more certain value.
On Tuesday Fyffes granted Chiquita a waiver to delay the meeting in order to enter discussions with the rival bidders, saying that "a protracted process is not in the interests of Fyffes business and shareholders."
Shares in Fyffes were trading up 1.03% at 77.79 pence per share Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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