Yuanxi Zhang
Long/short equity, value, special situations

Chiquita Brands: The Deal With Fyffes Is Probably Dead; A Higher Offer Is Likely


After Cutrale-Safra made an unsolicited offer to Chiquita Brands (NYSE:CQB) for $13.00 per share, the chance that Chiquita Brands closes the merger with Fyffes (FFY) is slim as the deal is unlikely to secure the requisite approval from Chiquita's shareholders. The Cutrale-Safra offer is undervalued compared with precedent transactions and the buyer group has not conducted due diligence on Chiquita Brands. We think Chiquita Brands is likely to be sold at $15 or above, so we recommend a speculative long position.

Background Information

On March 10th, 2014, Chiquita Brands announced that it will merge with Fyffes and relocate the headquarter of the combined company to Ireland. On August 11th, 2014, Cutrale-Safra made an unsolicited offer to Chiquita...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details