Chiquita Stock Up As Cutrale-Saftra Again Sweeten Bid - Update

(RTTNews) - Shares of Chiquita Brands International Inc (CQB) gained 8 percent after Brazilian companies Cutrale and Safra again raised their offer to buy the Charlotte, North Carolina-based banana producer for $14.50 a share, up fifty cents from the prior bid.

Agribusiness company Cutrale and asset manager Safra are trying to stave off a merger between Chiquita and Dublin, Ireland-based Fyffes Plc (FFY.L, FYFFF) and for which a meeting of Chiquita shareholders is set for Friday to decide on the deal.

Cutrale-Safra said their $14.50 per share cash offer represents a premium of about 14 percent compared to the closing price of Chiquita shares on October 22, a price it believes grossly overstates the value of the Fyffes deal as it is still very much incorporating support by the Cutrale-Safra offer.

Based on the trading value of the stock, Cutrale-Safra believes the effective premium to the Fyffes deal is now around or in excess of 20 percent.

Cutrale-Safra said their new offer for Chiquita will remain open until October 26, adding the offer is fully financed and not subject to any due diligence condition.

Chiquita confirmed the receipt of the new offer from Cutrale-Saffra and said it will review it in the interest of shareholders.

In March, Chiquita agreed to combine with Fyffes in a stock-for-stock deal that envisages the combined company to relocate to Ireland in order to benefit from lower corporate taxes.

But the merger deal was delayed after Cutrale-Safra offered to buy Chiquita for $13 per share in cash in August, which Chiquita rejected.

In late September, Chiquita and Fyffes announced a revised merger deal under which Chiquita shareholders are expected to own about 59.6 percent of the combined company, and Fyffes shareholders the rest.

But in mid-October Cutrale-Safra raised their offer for Chiquita to $14 per share, but the offer was once again spurned by Chiquita.

Chiquita and Fyffes had said their merger deal received clearance from the European Commission, marking an important step in their merger process.

Chiquita is a marketer 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.

Meanwhile, Wynnefield Capital, which owns a 3.5 percent stake in Chiquita, today affirmed its support for the sweetened offer from Cutrale-Safra. Wynnefield has been a staunch opponent of the Chiquita, Fyffes merger.

Chiquita stock is trading at $13.74, up $1.00 or 7.85%, on a volume of 1.6 million shares.