LONDON (Alliance News) - Chiquita Brands International Inc on Friday said its shareholders have rejected its proposed merger with Fyffes PLC, with the company saying it will enter into talks with Brazil's Cutrale Group and Safra Group on their USD14.50 per share bid for the company.
Earlier in the day, Chiquita's board had said it was still recommending its shareholders vote in favour of the Fyffes merger.
Chiquita Chairwoman Kerrii Anderson and Chief Executive Officer Ed Lonergan, in a statement issued ahead of the vote, said the board "continues to believe in the long-term value of the ChiquitaFyffes merger", adding it does not believe that the USD14.50 per share bid by Cutrale-Safra "is superior to the potential combination".
Following the vote, Lonergan said that, given the result of the vote, "we have determined to terminate the agreement with Fyffes and to engage with Cutrale-Safra regarding its revised offer."
Cutrale-Safra upped its offer on Thursday, having seen its previously increased USD14.00 per share bid rejected by Chiquita a week earlier.
Fyffes shares in London dropped on the back of the news, down 10% to EUR0.891.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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