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By Emma Haslett Friday, 15 August 2014

Going bananas? Chiquita tells us what's wrong (with a $611m takeover bid)

Banana giant Chiquita has rejected a $611m bid from Brazillian juice maker Cutrale.

Banana giant Chiquita has spurned the advances of a consortium including Brazillian juice maker Cutrale and banking and retail conglomerate the Safra Group, which has made a $611m (£366m) takeover offer. Either it's gone bananas, or the offer just isn't a-peeling.

Or perhaps its mind is elsewhere: after all, it is in the middle of trying to merge with Fyffes, which would form a business worth $1bn. In the fruit biz, that would make it top banana...

Cutrale and Safra made their offer on Monday, but so far Chiquita has resisted requests to provide them with financial information, saying the bid was 'inadequate' and 'not in the best interests of Chiquita and its shareholders'.

Instead, it chose to plug the Fyffes deal, which it first announced in March.

'Chiquitta remains committed to completing its transaction with Fyffes, which it believes will create a combined companiy that is better positioned to succeed in a highly competitive markeplace, while driving strong performance and value for shareholders,' it said.

Good to see the board isn't split..

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