More Business In Brief
Chiquita awaits new bid
Chiquita is postponing a vote on its proposed merger with the Irish fruit seller Fyffes as it awaits a new bid from another potential buyer.
Chiquita said it has received a waiver from Fyffes allowing it to hold talks with investment firm Safra Group and Brazil's Cutrale Group, an agribusiness and juice company. Chiquita is now seeking a best and final offer from Cutrale and Safra.
Shares jumped three per cent before the opening bell Monday.
Chiquita rejected a US$611 million offer from Safra and Cutrale last month.
A special shareholders meeting to vote on the Fyffes deal, which was to take place next week, will now be held on October 3.
Chiquita and Fyffes announced in March that they would combine to create a new company called ChiquitaFyffes PLC, based in Dublin, where Fyffes has its headquarters.
US Treasury to limit inversion profitability
The Obama administration will decide "in the very near future" what actions it can take to make it less profitable for United States (US) companies to shift their legal addresses to other countries, Treasury Secretary Jacob Lew said Monday.
A growing number of US companies are shifting their addresses abroad in an effort to reduce their US taxes. The manoeuvre is known as a corporate inversion.
In a speech Monday, Lew said these companies are eroding the US tax base and shifting the burden of funding the government to other taxpayers. He said the best way to address the issue is for Congress to overhaul the US tax code making it more attractive for companies to stay in the US.
With tax reform facing an uncertain future in Congress, Lew pressed lawmakers to pass legislation making it harder for US companies to pull off corporate inversions.
"Still, the administration is clear-eyed about the possibility that Congress may not move as quickly as necessary to respond to the growing wave of inversions," Lew said in a speech at the Urban Institute. "Given that, the Treasury Department is completing an evaluation of what we can do to make these deals less economically appealing, and we plan to make a decision in the very near future."