LONDON (Alliance News) - Irish fruit and fresh produce company Fyffes PLC Thursday issued a statement in response to Cutrale-Safra's upped takeover offer Wednesday to acquire Chiquita Brands International Inc, saying its own agreed merger with Chiquita is "superior" for shareholders.
Brazil's Cutrale-Safra Wednesday said it had made another offer to acquire the US's Chiquita Brands International for USD14 per share in cash, as it continues to try and thwart a merger between Chiquita and London-listed Fyffes.
"The agreed merger between Chiquita and Fyffes remains superior to [Wednesday's]unsolicited takeover offer from Cutrale-Safra," said Fyffes Chairman David McCann in a statement Thursday.
"As Chiquita illustrated in its most recent filing on 14 October, the implied present value of the ChiquitaFyffes deal is in a range of USD15.46 to USD20.01 per share," McCann added.
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. Last Friday, the High Court of Ireland granted its approval for the revised merger 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.
"The combination provides for substantial upside for all shareholders who will benefit from the combined company's equity growth prospects and USD60 million in annualised synergies already identified and achievable by 2016," said McCann in Thursday's statement.
"Comparatively, a deal with Cutrale-Safra undervalues the company's potential and represents only a finite value, putting a hard cap to upside for Chiquita shareholders. The ChiquitaFyffes transaction has received all regulatory approvals and is positioned for an expeditious closing following shareholder approval," McCann added.
Fyffes shares were down 1.1% at 78.29 pence Thursday mid-morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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