Not everyone supports Chiquita Brands International‘s plan to acquire Fyffes.
The day after the big banana producer won the crucial support of Institutional Shareholder Services in its plan to acquire its Irish rival and reincorporate abroad, Glass Lewis, the other big proxy advisory firm, reaffirmed its opposition to the deal.
In doing so, Glass Lewis is essentially suggesting Chiquita consider the definitive $14 per share offer from the Cutrale Group and the Safra Group, a pair of unlikely bidders trying to scuttle Chiquita’s bid for Fyffes.
In making its recommendation, Glass Lewis said it believed Chiquita was being too optimistic in projecting its future value.
“Following an extensive review of the available arguments, we find the board relies quite heavily on estimated NewCo values unsupported by market trends, questionable methodologies intended to undermine the perceived value of the Cutrale/Safra bid and an adamant commitment to press its own deal forward despite potential greater options available to Chiquita,” the advisory service said.
The recommendation was welcome news to the Cutrale-Safra group, which said its offer “provides Chiquita shareholders with a superior and compelling alternative” to the Fyffes deal.
Chiquita shareholders will vote on the Fyffes deal on Friday.