NEW YORK (TheStreet) -- Shares of Chiquita Brands International Inc. (CQB) are down -2.98% to $12.71 after juice maker Cutrale and investment firm Safra Group said yesterday they had offered to acquire the company in a $610.5 million cash deal that rivaled an all-stock agreement with Irish tropical fruit company Fyffes (FYFFF), Reuters reports
Shares of Fyffes closed down 3.50% to $1.38 yesterday.
Cutrale, based in Brazil, and Safra, a global banking and real estate group with strong roots in Brazil, said they were offering $13 per share in cash to Chiquita shareholders, a 29% premium to Chiquita's closing price on Friday.
Both groups said their proposal had been sent to Chiquita's board of directors and urged the company to enter negotiations that will lead to a definitive takeover agreement. They hope to have a response from Chiquita by Friday, Reuters said.
Meanwhile, Chiquita is attempting to close a merger with Fyffes, which the two companies announced in March. The combined market value of Chiquita and Fyffes is currently about $1 billion. The new firm was expected to be listed in New York but domiciled in Ireland for tax purposes, according to Reuters.
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: