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Monday, October 20, 2014

Chiquita says ISS reverses stance, recommends Fyffes deal, (NYSE: CQB)

Chiquita Brands International Inc said proxy advisory firm Institutional Shareholder Services reversed its stance and recommended that the banana producer's shareholders vote in favor of a revised offer from rival Fyffes Plc. Though Fyffes' revised offer worth $11.80 per share in stock is less than a sweetened cash offer of $14 per share from Brazilian juice maker Grupo Cutrale and investment firm Safra Group, it gives Chiquita's shareholders more control of the combined company.ISS said Grupo Cutrale and Safra Group's offer was not attractive enough, Chiquita said in a statement."While the Cutrale-Safra cash bid appears to offer relative certainty of value, it does not appear to offer a sufficient premium to the value of the Chiquita-Fyffes combination," Chiquita quoted ISS as saying.ISS declined comment and Cutrale and Safra could not be reached for comment.

Chiquita Brands International, Inc. (CBII), along with its subsidiaries, is an international marketer and distributor of bananas and other fresh produce, sold under the Chiquita and other brand names in 70 countries, and packaged salads sold under the Fresh Express and other brand names primarily in the United States. Shares of CQB fell by 4.19% or $-0.56/share to $12.80. In the past year, the shares have traded as low as $9.24 and as high as $14.43. On average, 678174 shares of CQB exchange hands on a given day and today's volume is recorded at 659102.