Speculation is growing that banana company Fyffes may attempt to acquire its American rival Chiquita.

Fyffes' half-yearly results, released yesterday (September 3) showed increased profits and a cash pile doubled in size fuelling expectations of a bid for Chiquita.

Chairman Neil McCann announced, with the figures, that: 'the company is well placed to maintain its strategy of group development by acquisition.' Chiquita is the natural target for a buy out and Fyffes would be expected to pay around £640 million to buy the firm.

Vice chairman Carl McCann refused to acknowledge the rumours, saying: 'We don't comment about any other company or any particular transaction that we might or might not wish to do. But we are working to maximise our cash balance. That's a very deliberate process.'

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