Wednesday, August 5, 2015

Banana firm Chiquita spurns $611m Brazil takeover bid

This article in BBC reports that Chiquita is not pursuing an offer to be purchased by two firms. The offer price was 29% higher than the price at which Chiquita was trading. "Chiquita said on Thursday that the Brazil offer was 'inadequate and not in the best interests of Chiquita shareholders'".
Questions:
  1. Who decided to reject the offer?
  2. What information does the decider have?
  3. What incentives does the decider face?
  4. Is the decision in the best interests of the shareholder? 

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