Chiquita rejects Brazilian takeover bid

NEW YORK, Aug 16 (AFP): Banana giant Chiquita rejected Thursday the takeover bid by Brazil's Cutrale and Safra groups, calling their offer "inadequate" and sticking to its plan to merge with European fruit seller Fyffes.
The board of Chiquita Brands International turned down the $13 a share, $611 million cash offer for all of its stock made Monday by Cutrale, a global power in orange juice and other fruit juices, and Safra, the wealthy Brazilian investment bank.
The offer "is inadequate and not in the best interests of Chiquita shareholders," the board said.
"Having made such a determination, Chiquita has determined not to furnish information to, and have discussions and negotiations with, the Cutrale Group and the Safra Group at this time."
The board said it would continue to back the merger with Fyffes, which would create the world's largest banana purveyor, with $4.6 billion in annual revenues.
That all-stock deal, announced in March, would allow Chiquita to avoid higher US taxes by relocating its statutory headquarters to Ireland, a so-called tax inversion.
Chiquita shareholders are slated to meet and vote on the merger in a special meeting on September 17.