Boston, MA 08/27/2014 (wallstreetpr) – According to reports, Fyffes and Chiquita Brands International Inc (NYSE:CQB) have tried to reassure all the investors over the planned merger. The representative of CQB said that the combined company would try to achieve an extra $20 million cost saving by 2016.
Timing of announcement:
Chiquita Brands International Inc (NYSE:CQB) has given this statement within the two weeks’ time after it rejected an unsolicited rival bid from the Safra Group and the Cutrale Group, both from Brazil. When both of these bidders came to know about the plans of CQB to take over Fyffes, they urged all the shareholders to reject this proposal. A special investor meeting is scheduled to take place on September 17, 2014 which can play make or break role in CQB’s plans to take over Fyffes.
Safra is a private bank in Brazil while Cutrale is a wholesale orange juice supplier in Brazil. Both the companies were interested to buy CQB in a total sum of $611 million or $13 per share. Although the senior management executives of both the companies i.e. CQB and Fyffes don’t look bothered about anything. David McCann, Executive Chairman of Fyffe and Edward F. Lonergan, Chief Executive of Chiquita Brands International Inc (NYSE:CQB) are committed to executing this merger process as soon as possible.
Recently the management of both Fyffe and CQB announced that the regulatory approval from the United States Government to execute the transaction had been received. Both the companies are now waiting for the approval from European authorities to execute this merger transaction. Chiquita Brands International Inc (NYSE:CQB) said that it expected the merger transaction to take place latest by October after the delay in approval from European Authorities. CQB offered as much as $526 million (approximate) to Fyffe in an all-stock deal in the month of March, but the share prices of CQB stock fell in recent months. The stock price of CQB jumped around 30 times in this month after it received a rival bid from Safra and Cutrale.
