Chiquita ‘misleading shareholders over potential benefits of Fyffes deal’

Brazilian juicemaker Cutrale, which is trying to block the proposed merger between Dublin-based banana distributor, Fyffes and US fruit giant Chiquita Brands, has said that Chiquita is misleading its shareholders over the potential growth benefits from such a merger.

Cutrale and its backer, the Brazilian investment firm, Safra, said Chiquita has misled its shareholders by suggesting the 40% earnings growth it has seen in the past two years is an indicator of the future performance of the enlarged entity.

“Chiquita has cherry- picked this time period. Using any other start date, earlier than 2012, in the prior 10 years, Chiquita’s compound annual growth rate, in earnings before interest, taxes, depreciation, and amortisation, through 2014 would have ranged from -9% to 1%,” the statement said.