Dive Brief:
- Chiquita Brands International has rejected a takeover offer from two Brazilian companies, and said it will move ahead with a tax-inversion merger with rival Fyffes.
- The surprise bid earlier this week by the Cutrale Group, a major supplier of orange juice, and the Safra Group, a private bank, valued Chiquita 29% higher than the Fyffes deal did.
- Safra and Cutrale responded with a harshly worded statement aimed at shareholders, saying that the the decision by Chiquita's "is a continuation of its track record of shareholder value destruction."
Dive Insight:
Well, well, well. Chiquita says that a 29% premium is "inadequate." Safra and Cutrale respond by saying they are "considering all alternatives to provide shareholders with the opportunity to send a clear message to the Chiquita board."
Sounds like a the beginning of a good, old-fashioned hostile takeover.
And that does raise a question: If Chiquita is correct and it's worth more than what the Brazilian companies have offered, will someone else come in with a higher bid and trigger a bidding war, similar to the one earlier this year around Hillshire Brands?