Chiquita Rejects Merger With Fyffes, Sources Speculate Discussions With Cultrale/Safra Finalized

Chiquita Brands International Inc (NYSE: CQB) announced on Friday that based on the votes cast during its Special Meeting of Shareholders, an agreement with Fyffes has not been approved.

Accordingly, Chiquita delivered a notice to Fyffes officially terminating the transaction agreement. The company now considers the proposed combination with Fyffes to have "lapsed for the purpose of the Irish Takeover rules."

"While we are convinced they would have been a strong merger partner, we will now go forward as competitors," Edward Lonergan, Chief Executive Officer of Chiquita said in a statement.

Chiquita also said that it will enter into discussions with the Cultrale/Safra Group regarding its revised offer to acquire all of the company for $14.50 per share.

O Estado de S. Paulo columnist Sonia Racy reported that a deal with Cultrale/Safra was imminent. The columnist cited sources involved in the ongoing negotiations that weren't specifically identified.

Chiquita said that it will not update the market with any new information unless the company's Board has reached a final decision.