Fyffes backs own bid over rivals’

Fyffes has responded to an increased rival bid for US banana producer Chiquita by saying its merger proposals remain the superior offer for shareholders.

“The agreed merger between Chiquita and Fyffes remains superior to [the] unsolicited takeover offer from Cutrale-Safra,” said Fyffes chairman David McCann. He was reacting to the Brazilian bidder increasing its bid for Chiquita from $13 (€10.15) per share to $14 per share, valuing a deal at around $660m.

“As Chiquita illustrated in its most recent filing, on October 14, the implied present value of the Chiquita-Fyffes deal is in a range of $15.46-$20.01 per share. The combination provides for substantial upside, for all shareholders, who will benefit from the combined company’s equity growth prospects and $60m in annualised synergies, already identified and achievable by 2016,” said Mr McCann. He added that a deal with the Brazilians would undervalue Chiquita’s potential and “represents only a finite value”.

Chiquita said earlier this week it still preferred the Fyffes option. Cutrale-Safra said its revised bid offers a premium of around 40% to the valuation of the original Fyffes-Chiquita proposal and a 19% premium to the adjusted stock price based upon the revised terms.

Goodbody Stockbrokers’ Patrick Higgins said the revised Cutrale bid for Chiquita doesn’t spell the end for hopes of a Fyffes-Chiquita merger.


Lifestyle

With documentary film ‘Fantastic Fungi’ set to take the world by storm, Joe McNamee looks at the fabulous world of mushroomsDocumentary explores the magic of mushrooms

I lead a very busy life — I’m a mature student in college — and I separated from my partner but the separation was my decision. I hate myself when it beckons as it ultimately makes me fatter, it has the reverse effectDear Louise: I had my bulimia under control. But the demon has returned

This year has been particularly difficult and stressful, and I think that’s an even more important reason to make time for your health.Derval O'Rourke: Resistance is far from futile and necessary

Best-selling author Faith Hogan is keeping the faith during the lockdown, thanks to her Moy Valley haven in Ballina, Co Mayo.Shape I'm in: Keeping the Faith during lockdown

More From The Irish Examiner