Friday, October 24th4.6°C
23711
23129

Chiquita Brands gets a $611M buyout offer from Safra Group, Cutrale Group, will review it

NEW YORK, N.Y. - Chiquita Brands has received a buyout offer worth about $611 million from investment firm Safra Group and the Brazilian agribusiness and juice company Cutrale Group.

Safra and Cutrale are offering $13 per share, a 29 per cent premium to Chiquita Brands International Inc.'s closing price of $10.06 on Friday. Chiquita said its board would review it and asked shareholders to await its recommendation.

The unsolicited bid disclosed Monday comes as Chiquita and Fyffes of Ireland were working on their own transaction. The two companies agreed in March to merge in a stock-for-stock deal to create the world's biggest banana supplier. If a transaction were to occur between Chiquita and Fyffes, Chiquita's headquarters would move from Charlotte, North Carolina, to Dublin, a more tax-efficient corporate base.

In a letter sent to Chiquita President and CEO Edward Lonergan and Chairwoman Kerrii Anderson, Safra and Cutrale said that they believe their proposed transaction doesn't have the same execution risk and uncertainty that a deal with Fyffes does. The companies also said that they think their offer gives more value to Chiquita shareholders and could be completed before year's end.

Safra and Cutrale said that they would like to hear back from Chiquita on their offer by noon on Friday.

In a statement, Chiquita Brands said its board would "carefully review and consider the offer to determine the course of action that it believes is in the best interest of the company and its shareholders."

It advised shareholders to take no action for now and await the board's recommendation.

But it also noted that "we continue to strongly believe in the strategic merits and value provided by the proposed deal with Fyffes PLC."

Representatives from Fyffes did not immediately respond to emails seeking comment.

Gaining access to Chiquita would add more diversity to Cutrale's business. The company is an orange juice processor that also has operations that include apples, peaches, lemons and soybeans. Safra runs banks and invests in other businesses in North and South America, Europe, the Middle East and Asia.

In addition to being a major banana distributor, Chiquita Brands markets and distributes pineapples, packaged salads and other fresh produce.

Shares of Chiquita surged $3.13, or 31.1 per cent, to $13.19 in Monday afternoon trading — above the offered price.

The Canadian Press


Read more Business News

23433


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23216

FEATURED Property
210186125-2433 Ingram Road
2 bedrooms 2 baths
$169,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23091