Chiquita Brands (CQB) is a global leader in bananas and the U.S. leader in packaged salads. Our original investment came after the company’s earnings declined due to market share losses in salads, tough European markets and foreign exchange losses. We believed new management had a strong history and a compelling plan to improve consistency of results and capital allocation. Chiquita stock performed well in the quarter due to a buyout offer from a Brazilian conglomerate in an attempt to trump Chiquita’s existing plans to merge with a European partner. We took advantage of the strength in the stock to reduce our position and may continue to do so.
From Meridian Funds (Trades, Portfolio)’ Meridian Contrarian Fund 3Q 2014 Commentary.
