Chiquita Brands Rejects Offer From Cutrale-Safra

(RTTNews) - Chiquita Brands International, Inc. (CQB) Thursday rejected the $13.00 per share cash offer from agribusiness firm Cutrale Group and asset manager Safra Group as inadequate and not in the best interests of Chiquita shareholders.

The company said its Board of Directors, after careful consultation with its legal and financial advisors, unanimously determined that the unsolicited offer is inadequate and not in the best interests of Chiquita shareholders.

Having made such a determination, Chiquita decided not to furnish information to, and have discussions and negotiations with, Cutrale Group and Safra Group at this time.

Chiquita, based in Charlotte, North Carolina, is a marketer of nutritious food products - from bananas, blends of convenient green salads, other fruits to healthy snacking products. The firm employs about 20,000 people globally and has annual revenues of more than $3 billion.

Chiquita's is already in a merger deal with Irish rival Fyffes Plc (FFY.L, FYFFF). The deal envisages the combined company to relocate to Ireland in order to benefit from lower corporate taxes.

It was in March that Chiquita agreed to combine with Fyffes in a stock-for-stock deal that is expected to result in Chiquita shareholders owning about 50.7 percent of the combined company, and Fyffes shareholders owning rest of the stake.

Now, the Chiquita Board of Directors has also unanimously reaffirmed its recommendation that the company's shareholders vote to approve the definitive merger agreement between Chiquita and Fyffes.

Chiquita remains committed to completing its transaction with Fyffes, which it believes "will create a combined company that is better positioned to succeed in a highly competitive marketplace, while driving strong performance and value for shareholders."

CQB closed up 0.7 percent on Thursday at $13.51.