Chiquita Brands International said today (10 September) it would allow Brazilian bidders Cutrale Group and Safra Group to conduct due diligence on the produce giant.

The US company is the subject of a US$610m bid from juice maker Cutrale and investment firm Safra. It was an offer Chiquita, which had lined up a merger with Fyffes, had rejected, prompting public criticism from Cutrale and Safra.

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However, the rival interest in Chiquita led shareholder advisory groups ISS, Glass Lewis and Egan-Jones to urge investors not to back the planned merger with Fyffes at a meeting that had been set for next week.

Earlier this week, Fyffes said it had granted Chiquita a “waiver” to hold talks with the bidders. Chiquita announced it would enter into discussions and postponed the planned vote on the Fyffes deal to 3 October. Cutrale and Safra responded with a strongly-worded statement hitting out at the conditions they claimed Chiquita had placed on the talks.

However, Chiquita has relaxed some of the conditions and today both sides said due diligence would take place.

In a statement, Cutrale said: “While it is not tied to the time-frame previously disclosed, it will use its best efforts to complete its due diligence and present its definitive offer as expeditiously as possible for Chiquita’s consideration.”

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Chiquita added: “The confidentiality agreement with Cutrale / Safra is similar to the one Fyffes signed, other than as permitted under the terms of Chiquita’s existing transaction agreement with Fyffes.

“Chiquita has agreed to allow Cutrale / Safra to conduct due diligence, including access to a data room and its management team. Cutrale / Safra has indicated that it will use its best efforts to complete its due diligence and present its definitive offer as expeditiously as possible for Chiquita’s consideration.”