Chiquita Fyffes deal in jeopardy
Brazilian juice maker Cutrale Group and financial conglomerate Safra Group said on Monday in a joint statement they are offering $13 a share for Charlotte, North Carolina-based Chiquita. The proposal is 29 per cent more than Chiquita's closing share price on August 8 and isn't subject to financing conditions, Cutrale and Safra said.
The proposed bid jeopardises the Fyffes merger that would lower Chiquita's tax bill by moving its headquarters from the US to Ireland. Cutrale, a closely held company controlled by Brazil's Jose Luis Cutrale, is partnering with banks controlled by Joseph Safra, Brazil's second-richest man, to challenge the Fyffes tie-up.
The offer comes as Chiquita has sought to close its own merger with Irish tropical-fruit company Fyffes PLC. Chiquita earlier this month said the Fyffes deal was expected to win approval at a shareholder meeting next month, with the transaction anticipated to close by the end of 2014.
Cutrale and Safra
Cutrale controls more than one-third of the $5 billion orange-juice market, and also has global operations in apples, peaches, lemons and soybeans, according to the statement.
"This platform offers Chiquita extensive experience in all aspects of the fruit and juice value chain," Cutrale and Safra said in the statement.
Safra has more than $200 billion of assets under management and operates banks in North America, South America, Europe, the Middle East and Asia, according to the statement.
Joseph Safra, 75, has a net worth of $13.2 billion, according to the Bloomberg Billionaires Index. The majority of his fortune comes from his sole ownership of a banking empire whose flagship is Sao Paulo-based Banco Safra. Most of the rest comes from a wealth management company built around his $2.1 billion acquisition of Switzerland's Bank Sarasin.
By end-of-year
"If we are able to proceed on a timely basis with due diligence and discussions, we will be in a position to close the transaction before the end of the year, within the same timeframe you have indicated for the Fyffes transaction," Cutrale and Safra said in a letter to Chiquita's management, a copy of which was included in the statement.
Source: bloomberg