NEW YORK (TheStreet) -- Chiquita Brands International Inc. (CQB) announced today that along with Irish fruit importer Fyffes Plc. they revised their merger agreement, giving Chiquita shareholders a larger stake in the combined company.
Together, the two companies will form the world's largest banana supplier, the Associated Press reports.
Chiquita shareholders are expected to own approximately 59.6% of ChiquitaFyffes, an increase from 50.7% under the previous agreement. Fyffes shareholders' stake will be reduced to 40.4% from approximately 49.3%.
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. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."
You can view the full analysis from the report here: CQB Ratings Report
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