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What now for shareholders?

Fyffes shareholders now have to sit tight for another month before they have their say on the planned merger with Chiquita.

The shareholder meeting to seek approval for the deal had been due to take place next Friday. But following the publication of new deal terms yesterday, that meeting has now been pushed back to October 28.

In the meantime, Fyffes shareholders will have to consider whether they're willing to give away more of the new combined ChiquitaFyffes company in order to push the deal through.

For every Fyffes share, Fyffes shareholders will receive 0.1113 ChiquitaFyffes shares, while Chiquita investors will get one ChiquitaFyffes share for every Chiquita share they hold.

Merrion Stockbrokers analyst David Holohan said he believes the revised terms still make the deal palatable all round.

Patrick Higgins, an analyst at Goodbody Stockbrokers said the revised terms may prove more attractive for Chiquita shareholders.

He said the new terms offer "better odds" for the proposed merger.

"At the same time, the termination fee may also prove lucrative for Fyffes in the event it gets left at the altar," he added.

Fyffes shareholders can expect more letters in the post in coming days.

Irish Independent