Brazilians slip up in move for Chiquita as banana group reaffirms support for merger with Irish fruit firm Fyffes
Brazilian investors have slipped up in their effort to buy banana powerhouse Chiquita, which is pressing ahead with a planned merger with Dublin-based fruit seller Fyffes.
Chiquita Brands International rejected a £363million bid from juice-maker Cutrale and Safra investment bank.
It labelled the offer ‘inadequate and not in the best interests of Chiquita shareholders' while reaffirming support for the Fyffes deal.
Merger: кварто квинтовый круг Fyffes and Chiquita are set to create a buisness with a total market valuation of £600million
The takeover bid was announced unexpectedly on Monday by Cutrale and Safra, who partnered to derail a tie-up that would make Chiquita-Fyffes the top banana supplier in the world.
Chiquita shares climbed 31 per cent while Fyffes rose 2 per cent to 75p on news the deal would go ahead.
With Fyffes, the world's oldest fruit brand, Chiquita is set to create a buisness with a total market valuation of £600million.
It will combine Chiquita's US interests with Fyffes' strength in Europe, South America and Asia.
Chiquita said it had determined not to enter discussions with the Cutrale-Safra partnership ‘at this time', fuelling speculation that Chiquita is anticipating further offers in the near future.