Chiquita Shareholders Vote Against Merger With Fyffes

(RTTNews) - Banana producer Chiquita Brands International Inc (CQB), Friday said it has terminated the merger deal with Dublin, Ireland-based Fyffes Plc (FFY.L, FYFFF), after its shareholders voted to reject the deal.

Meanwhile, Chiquita Brands said it would start discussions with Brazilian companies Cutrale and Safra Group, who have been trying to lure Chiquita with takeover offers since August.

Chiquita Chief Executive Edward Lonergan said, "I want to thank David McCann and the entire Fyffes team for their efforts throughout this process. While we are convinced they would have been a strong merger partner, we will now go forward as competitors."

Shareholders of Charlotte, North Carolina-based Chiquita did not approve the merger deal with Fyffes at a special meeting held today, the company said in a statement.

In March, Chiquita agreed to merge with Fyffes and to relocate to Ireland in order to take advantage of lower corporate tax benefits, however, shareholders rejected the deal after the U.S. government made changes to tax rules.

Since August, Cutrale and Safra have been trying to stave off Chiquita's merger with Fyffest and offered to buy Chiquita for $13 per share in cash, and later raised its offer twice up to $14.50 per share.

"Given today's results, we have determined to terminate the agreement with Fyffes and to engage with Cutrale/Safra regarding its revised offer," Lonergan said,

Chiquita is into marketing of nutritious food products - from bananas, blends of convenient green salads, other fruits to healthy snacking products. Chiquita employs about 20,000 people globally and has annual revenues of more than $3 billion.

CQB is currently trading at $14.24, up $0.48 or 3.49%, on the NYSE.