Fyffes has granted its proposed merger partner Chiquita permission to talk to rival bidder, Cutrale-Safra.

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.

Banana distributor Fyffes yesterday filed an investor presentation to the US Securities and Exchange Commission correcting what it refers to as misleading statements made in relation to its proposed merger with Chiquita.

The planned merger of Fyffes with its US banana-producing rival, Chiquita Brands is still widely expected to succeed, with one analyst suggesting a deal could be concluded earlier than anticipated by the end of October.

Shares in Irish banana giant Fyffes are down by almost 15% after its planned merger with Chiquita was thrown into doubt.

Shares in Dublin-based fruit giant, Fyffes plummeted over 20% at one point yesterday after its intended merger with Chiquita Brands was thrown into jeopardy, with the latter receiving an unsolicited $611m takeover offer.