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United States : CHIQUITA BRANDS reaffirms plans to undergo corporate tax inversion; Proposed merge to create leading banana company worldwide [TendersInfo (India)](TendersInfo (India) Via Acquire Media NewsEdge) Chiquita Brands International (CQB) has reaffirmed its plan to go through a corporate tax inversion, by announcing a sweetened merger deal that would provide the banana giant's stakeholders with a greater percentage of the deal with Irish competitor Fyffes. The revision could possibly halt a Chiquita acquisition bid from a group of Brazil-based bidders. The changes would provide Chiquita stakeholders with 59.6% of the combined entity, up from 50.7% under the original deal, Fyffes stakeholders would hold nearly 40.4%. The new proposal would also raise the break-up fee to Fyffes if the merger is not concluded, increasing it to 3.5% of the total value of issued stock capital. Under the earlier deal, the fee was set at 1%. Moreover, Fyffes would be authorized to end the deal if Chiquita stakeholders fail to approve it on or before Oct. 24. Chiquita's board of directors reaffirmed its proposal asking company stakeholders to vote for the merger. Chiquita CEO Ed Lonergan said : "We are pleased with the increased value that these enhanced terms for Chiquita bring to our shareholders. The Fyffes transaction is a natural strategic partnership that brings together two complementary companies to create a combined company that is better positioned to succeed in a highly competitive marketplace, while driving strong performance and value for shareholders as well as immediate benefits for customers and consumers worldwide." Calling the planned merger "strategic and compelling," David McCann, executive chairman of Fyffes, said it would establish the leading banana company worldwide. (c) 2014 Euclid Infotech Pvt. Ltd. Provided by SyndiGate Media Inc. (Syndigate.info). |