NEW YORK (TheStreet) -- Shares of Chiquita Brands International Inc. (CQB) are climbing higher by 30.32% to $13.11 in early trading on Monday after Cutrale Group and Safra Group offered to buy 100% of the company’s outstanding stock for $13 per share.
Chiquita Brands is an international marketer and distributor of bananas and other produce. Cutrale Group is a juice company, and Safra Group is an international banking and investing firm.
The proposal is an all cash offering representing a 29% premium to Chiquita’s closing share price of $10.06 as of August 8, Cutrale and Safra said.
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Separately, TheStreet Ratings team rates CHIQUITA BRANDS INTL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHIQUITA BRANDS INTL INC (CQB) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: