Dive Brief:
- Safra Group and Cutrale Group have taken the initial steps to launch a proxy fight to seize control of Chiquita Brands International.
- The Brazilian companies reacted to the rejection of their takeover bid by filing proxy materials and urging shareholders to vote against Chiquita's tax-inversion merger with Ireland's Fyffes.
- If the Fyffes merger were to go through, it would create the world's largest banana company, pushing Dole to second place.
Dive Insight:
Well this isn't much of a surprise.
Chiquita's decision to reject the Brazilian companies' offer out-of-hand, even though the bid represented a whopping 29% premium to the company's value under the Fyffes deal, wasn't likely to go without challenge.
A takeover battle is now all but inevitable. And it would seem that the Brazilians might have a pretty compelling story to tell Chiquita shareholders.