LONDON (Alliance News) - Cutrale-Safra Wednesday said it has made another offer to acquire Chiquita Brands International Inc for USD14 per share in cash, as it continues to try and thwart a merger between Chiquita and London-listed Fyffes PLC.
Chiquita and Fyffes agreed to merge earlier this year to create the world's biggest banana company, a deal that was cleared earlier this month by the European Commission. The deal is still subject to approval from both of the companies shareholders, at general meetings scheduled for October 24, and the High Court of Ireland.
In a statement Wednesday, Cutrale-Safra said it had made a definitive offer to acquire all the outstanding stock of Chiquita for USD14 per share in cash.
"Unlike the proposed combination with Fyffes, the superior Cutrale-Safra offer provides Chiquita shareholders complete certainty with respect to the value of their Chiquita investment," Cutrale-Safra stated in its statement.
"Our all-cash offer provides certain value to Chiquita shareholders on a timely basis. It constitutes a ?Chiquita Superior Proposal? under the terms of the Fyffes Transaction Agreement because it is more favorable to the Chiquita shareholders than the proposed combination with Fyffes, taking into account all financial, regulatory, legal and other aspects of our offer,"
Cutrale-Safra's offer per share is higher than Fyffes' revised offer of USD11.82, but Chiquita would get a much bigger stake in the combined company under the Chiquita-Fyffes deal.
Under the revised merger terms with Fyffes, Chiquita shareholders are expected to own 59.6% of the combined business, with Fyffes shareholders expected to own approximately 40.4% of the ChiquitaFyffes business, on a fully diluted basis.
"Cutrale-Safra is also delivering to Chiquita equity and debt commitment letters for the transaction. The offer reflects Cutrale-Safra?s assessment and analysis of Chiquita?s current condition and prospects," Cutrale-Safra said in its statement.
Fyffes shares were trading 0.8% lower Wednesday afternoon at 80.27 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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