Wynnefield Capital Rejects Chiquita-Fyffes Proposal As Inferior - Quick Facts

(RTTNews) - Wynnefield Capital, a long-term holder of Chiquita Brands (CQB), owning 1.65 million shares or 3.5 percent of the company, said it rejects the Fyffes transaction backed by the Chiquita board as offering inferior value, and that it supports the recently announced $14.00 per share offer made by the Cutrale-Safra Group.

Wynnefield projects that Chiquita's shares would fall by $2.00 - $2.50 if the Fyffes transaction were approved.

At the same time, Wynnefield's analysis demonstrates that the all-cash Cutrale-Safra proposal would provide superior value and eliminate the risks associated with a merger.

As a company analyzed on a cash-flow basis, rather than on Earnings per Share basis, Chiquita Brands would be a better company for all stakeholders as a private enterprise.

Wynnefield believes that the Chiquita Brands Board of Directors failed to carry out its fiduciary duties by agreeing to the inferior Chiquita-Fyffes transaction, which favors Fyffes shareholders over Chiquita shareholders. This view is shared by the investment markets, which traded down the share price of Chiquita Brands until the initial announcement of the Cutrale-Safra proposal, it added.