Dive Brief:
- Chiquita International has rejected the latest takeover bid from Brazil's Safra Group and Cutrale Group, saying it will move ahead as planned with its merger with Ireland's Fyffes.
- Chiquita's decision, which was widely expected, sets up the possibility of a proxy war in which the Brazilian investors seek to wrest the company away from management.
- Chiquita's all-stock offer for Fyffes, which has won the support of European regulators, would create the world's largest banana company.
Dive Insight:
There are three possible next moves in the great banana merger war. The most likely is that Safra and Cutrale take their case directly to Chiquita's shareholders. Another option would be for the Brazilians to try once more to win over Chiquita management by sweetening their offer further. Or — and this would seem very unlikely — Safra and Cutrale would back away and let Chiquita and Fyffes combine.