Chiquita Terminates Deal With Fyffes; To Enter Into Talks With Cutrale/Safra

(RTTNews) - Chiquita Brands International Inc. (CQB) announced Friday that its shareholders did not approve the revised transaction agreement with Fyffes Plc (FFY.L, FYFFF). Accordingly, each of the parties has delivered notice to terminate the transaction agreement, and the proposed combination with Fyffes has lapsed for the purpose of the Irish Takeover Rules.

In addition, Chiquita said that it expects to enter into discussions with the Cutrale/Safra Group regarding Cutrale / Safra's revised offer to acquire all of the outstanding stock of Chiquita for $14.50 per in cash.

Chiquita noted that no definitive agreement with Cutrale / Safra has been reached and there can be no assurances that any transaction will result from these discussions.

On Thursday, Brazilian companies Cutrale and Safra raised their offer to buy the Charlotte, North Carolina-based banana producer Chiquita Brands for $14.50 a share, up fifty cents from the prior bid.

In March, Chiquita agreed to combine with Fyffes in a stock-for-stock deal that envisages the combined company to relocate to Ireland in order to benefit from lower corporate taxes.

But the merger deal was delayed after Cutrale-Safra offered to buy Chiquita for $13 per share in cash in August, which Chiquita rejected.

In late September, Chiquita and Fyffes announced a revised merger deal under which Chiquita shareholders are expected to own about 59.6 percent of the combined company, and Fyffes shareholders the rest.

But in mid-October Cutrale-Safra raised their offer for Chiquita to $14 per share, but the offer was once again spurned by Chiquita.