The Brazilian combo of Cutrale-Safra Group had an initiated a bid for Chiquita Brands International Inc. that was rejected by management of the brand. On Thursday contender duo took initial steps to initiate a proxy tussle in its unreceptive takeover attempt.
Cutrale the Brazilian juice maker and Safra Group which is a banking and real estate conglomerate have teamed up together and to make an offer of $610.5 million in cash for the banana producer based in the United States. On Monday they asked the Chiquita shareholders to vote against an intended merger that is in progress with Fyffes Plc, an Irish tropical fruit company. The pair also asked the shareholders to adjourn a shareholder meeting that has been planned for the special purpose on September 17.
Cutrale has faced a tough time for years with the falling consumption of its orange juice all over the world and is trying to expand its avenues through other products and enter new markets. Analysts say that Safra Group which is controlled by Joseph Safra a Brazilian-Lebanese financier will be financial muscle behind Cutrale and will give it a hand in outbidding Fyffes.