Chiquita asks shareholders to vote on Fyffes merger
Chiquita outlined additional cost savings from its proposed merger with the Irish fruit company Fyffes as it asks shareholders to approve the deal, two weeks after it rejected a takeover bid out of Brazil.
In a letter to its investors, the company said shareholders can vote over the phone, online, by mail or at a meeting being held on September 17.
Chiquita also said Wednesday that it's identified still more cost savings in a proposed tie-up with Fyffes to bolster its case for the deal.
Chiquita and Fyffes said that the new entity that they would form, the biggest banana company in the world, will generate US$60 million in annual pretax savings. That is US$20 million more than the companies had previously projected. The companies also increased their projections by about US$10 million, to as much as US$55 million, in expected annual earnings before interest, taxation and amortisation.
Earlier this month, Chiquita rejected a US$611 million buyout offer from investment firm Safra Group and the Brazilian agribusiness and juice company Cutrale Group.
In March, Chiquita and Fyffes said that they would combine to create a new company called ChiquitaFyffes PLC, based in Dublin, where Fyffes has its headquarters.
Chiquita Brands International Inc is based in Charlotte, North Carolina.