Chiquita Brands International Inc. announced that its board of directors — after careful consultation with its legal and financial advisors — unanimously determined that the unsolicited buyout offer from the Cutrale Group and the Safra Group is inadequate and not in the best interests of Chiquita shareholders.
On Aug. 11 the pair of companies reached out to Chiquita in an attempt to acquire all of the outstanding stock of Chiquita for $13 per share in cash, which was nearly 30 percent above the share price when the offer was made. At this time Chiquita determined not to furnish information to, and have discussions and negotiations with, the Cutrale Group and the Safra Group.
Additionally, the Chiquita board of directors has unanimously reaffirmed its recommendation that Chiquita shareholders vote to approve the definitive merger agreement between Chiquita and Fyffes.
According to a press release, Chiquita remains committed to completing its transaction with Fyffes, which it believes will create a combined company that is better positioned to succeed in a highly competitive marketplace, while driving strong performance and value for shareholders.