Chiquita to reconsider previously rejected Brazilian buyout
Chiquita to reconsider previously rejected Brazilian buyout
The merger agreement Chiquita Brands International Inc. had announced with Dublin, Ireland-based Fyffes plc is once again at risk. Fyffes has granted Chiquita a waiver permitting it to engage in discussions with the Cutrale Group and the Safra Group, a pair of Brazilian companies that submitted an Aug. 11 buyout proposal.
At the time, Chiquita said the offer was not in the best interest of its shareholders and reaffirmed its recommendation that they vote to approve the Chiquita-Fyffes merger; however, Chiquita has now sent a letter to Cutrale and Safra indicating its willingness to offer to the pair of companies the opportunity to present its final and best offer.
Chiquita also announced that the special meeting of shareholders to vote on the proposed merger with Fyffes has been postponed to Oct. 3. The meeting had been scheduled for Sept. 17.
"Chiquita 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," the company said in a press release.
In the interim, Chiquita continues to recommend that its shareholders vote for the Fyffes transaction.