A report in the Irish Independent published on December 10, refers to mounting speculation that Fyffes is preparing to bid for Chiquita, which has filed for bankruptcy protection in the US.

But, according to chapter 11 bankruptcy rules, no deal will be considered before March next year when proceedings are complete.

The Irish national daily points to 'a flurry of activity in the banking sector' giving rise to speculation that Fyffes may be interested in Chiquita and considering funding the purchase through both cash and debt.

Fyffes issued a statement: 'The Irish Independent storySis pure speculation and the company does not comment on speculation.' Figures quoted in the report say the bid could be for ?1billion. Fyffes is in a position of strength having enjoyed a good year and with cash reserves of some ?100million. But taking on Chiquita means $800m of bonds, $350m of debt and $50m in equity.

For Fyffes, a foothold in eastern European markets is at stake. The Irish multi-national is already strong in the UK, Ireland and other EU member states, but with several eastern European nations poised to accede to the union, taking on Chiquita's presence in those markets at this stage would strengthen Fyffes.

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