Shares in tropical fruit producer Fyffes have dropped 6% after rival Chiquita received an alternative takeover proposal.
Fyffes and Chiquita were set to merge and become the world's largest banana company, which was to be based in Ireland.
The agreement between both boards of directors, back in March, was to create a firm that would operate in more than 70 countries and employ around 32,000 people globally.
Chiquita-Fyffes was to be listed on the New York Stock Exchange (NYSE) and be domiciled in Dublin.
This merger is now at risk of collapsing.
Today the Cutrale Group and the Safra Group have proposed to acquire 100% of Chiquita at a price of US$13 (€9.71) per share in cash.
The proposal has been conveyed to Chiquita in a letter to the chairwoman of the Chiquita board of directors, Kerrii Anderson, and Chiquita president and CEO, Edward Lonergan.
The letter says "This proposal represents a highly compelling premium of 29% to the market's valuation of the proposed transaction with Fyffes plc, based on Chiquita's closing share price of $10.06 as of August 8, 2014."
"Moreover, if we are able to proceed on a timely basis with due diligence and discussions, we will be in a position to close the Transaction before the end of the year, within the same timeframe you have indicated for the Fyffes transaction, without the execution risk and uncertainty inherent in that transaction."
