NEW YORK (TheStreet) -- Shares of Chiquita Brands International Inc. (CQB) are rising 30.32% to $13.11 on heavy volume in mid-afternoon trading on Monday, following an offer from The Cutrale Group and Safra Group to purchase all outstanding shares of Chiquita’s stock for $13 per share, or $610.5 million in cash.
The Cutrale Group, an agribusiness and juice company, and Safra Group, a global investment firm, said the proposal represents a 29% premium to Chiquita’s August 8 closing share price of $10.06.
Chiquita is an international marketer and distributor of bananas and other fresh produce.
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Earlier today the company provided a “Rule 2.10” announcement stating Chiquita confirmed its issued share capital comprised of 46,967,899 common shares, as of August 8.
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."