The last time we checked on Chiquita Brands International Inc. (NYSE: CQB), it was preparing for a merger with Fyffes PLC. Yogi Berra once said, “It’s deja vu all over again.” Those are words that ring true to Chiquita’s current position because it finds itself staring down the barrel of a second merger.
Back in March, Chiquita and Fyffes had entered into discussions for a merger. Both of the boards of directors unanimously approved the prior definitive merger agreement. At the completion of this stock-for-stock transaction Chiquita’s shareholders would own 50.7% while Fyffes would own 49.3% of the newly formed ChiquitaFyffes.
Unfortunately for Fyffes, the offers made to buy out Chiquita caused its stock to drop 15% while Chiquita’s stock gapped up over 30%. Chiquita’s press release said,
“Consistent with its fiduciary duties, Chiquita’s Board of Directors, in consultation with its legal and financial advisors, will carefully review and consider the offer to determine the course of action that it believes is in the best interests of the Company and its shareholders. Chiquita shareholders are advised to take no action at this time and to await the Board’s recommendation. Chiquita will have no further comment on the Cutrale Group and the Safra Group’s offer until the Board has completed its review.”
247 Wall St. has asked before and will ask again – just how much should a banana empire be worth? Apparently, Chiquita investors are at least partially operating as though yet an even higher bid will come its way. The Cutrale Group and Safra Group speculate that answer in the unsolicited offer to Chiquita valued at $13.00 a share. Chiquita traded over 8.6 million shares, and the stock closed at $13.10 after rising as high as $13.56 in Monday’s trading session.
Chiquita’s 52-week average is now $9.24 to $13.68. The Thomson Reuters consensus target price is $14.00.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
