The proposed merger between Chiquita and Fyffes is facing another hurdle in the form of a group of shareholders in the US, namely a pension fund for firefighters in Alabama.
According to the Irish Times, the Birmingham-based shareholder group is suing Chiquita's directors for alleged breaches of fiduciary by accepting the terms of the Fyffes merger – a deal that the pension fund feels favours Fyffes due to the bulk of management control of the merged organisation going to the Irish group.
In addition, the group has claimed the deal should be blocked due to what they feel is the inferiority of Irish corporate law, when compared with the US, in terms of protections offered to shareholders.
The shareholders want an injunction to prevent the Chiquita vote on the deal, which is scheduled for 24 October.
No comments yet