Cutrale Group and Safra Group have returned to the bargaining table with an increased offer of US$14.50 per share for Chiquita Brands International.
The new offer is the third made for the US produce giant, which is looking to merge with Ireland’s Fyffes.
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Last week, the juice maker and private-equity firm upped its original bid from US$13 per share to US$14 per share. Chiquita rejected this, saying it was still not in the best interests of shareholder.
Cutrale and Safra said the latest offer represented a “compelling premium of approximately 14% compared to the closing price of Chiquita shares on October 22, 2014, a price that we believe substantially overstates the value of the Fyffes transaction as it is still very much incorporating support by the Cutrale-Safra offer”.
Independent investor advisory firms have been divided over which is the more beneficial offer for Chiquita shareholders. On 20 October, Institutional Shareholder Services changed its decision on a previous recommendation that Chiquita should not push forward with plans to merge with Fyffes. Instead it advised its clients to vote ‘for’ the deal. A day later, Glass Lewis said it believed there were “greater options” than the ChiquitaFyffes deal and advised clients to vote against the merger.
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