Oct 20 Chiquita Brands International Inc
said proxy advisory firm Institutional Shareholder Services
reversed its stance and recommended that the banana producer's
shareholders vote in favor of a revised offer from rival Fyffes
Though Fyffes' revised offer worth $11.80 per share in stock
is less than a sweetened cash offer of $14 per share from
Brazilian juice maker Grupo Cutrale and investment firm Safra
Group, it gives Chiquita's shareholders more control of the
ISS said Grupo Cutrale and Safra Group's offer was not
attractive enough, Chiquita said in a statement.
"While the Cutrale-Safra cash bid appears to offer relative
certainty of value, it does not appear to offer a sufficient
premium to the value of the Chiquita-Fyffes combination,"
Chiquita quoted ISS as saying.
ISS declined comment and Cutrale and Safra could not be
reached for comment.
ISS in September recommended Chiquita's shareholders vote
against the company's proposed merger with Fyffes and adjourn a
shareholder meeting to push the company's board to negotiate
Fyffes later that month revised the terms of the merger to
increase Chiquita's share of the combined company to 59.6
percent from 50.7 percent as it sought to stave off
Cutrale-Safra's competing bid for Chiquita.
Chiquita's shares were down 1.5 percent at $13.16 at midday
on the New York Stock Exchange on Monday.
(Reporting by Ramkumar Iyer in Bangalore; Editing by Kirti
Pandey and Savio D'Souza)