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Fresh Produce

Fyffes Pressing Ahead With Chiquita Plans Despite Rival Presence

By square1
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Fyffes Pressing Ahead With Chiquita Plans Despite Rival Presence

Fyffes is still confident in its ability to close its merger with Chiquita, despite a rival bid from Brazilian group Safra and US-based juice maker Cutrale earlier this week.

Fyffes has reportedly posted proxy forms to shareholders, as well as a prospectus, ahead of a planned shareholder ballot in mid-September.

Fyffes will be aware that the rival offer values the company at 30% more than its own valuation, however it is confident that the structure of its deal, whereby shareholders can avail of longer-term returns, will win out.

Chiquita reportedly has until the end of the week to respond to both deals.

The Fyffes offer has drawn attention from Washington, however, as the completion of the deal would mean that the merged entity would move its headquarters to Ireland, seen by many in the US government as a 'tax haven'.

Previously, Chiquita’s chief executive Ed Lonergan commented, “Tax didn’t motivate our transaction, and it wasn’t a driver of our transaction.”

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