Staff/Wire services
Chiquita Brands International Inc. said its Greek subsidiary paid 14,700 euros, or $18,017, in 2003 to settle a local tax audit, which may violate the U.S. Foreign Corrupt Practices Act, the company said in a filing with the U.S. Securities and Exchange Commission.
Chiquita reported the payment to the SEC and the U.S. Department of Justice, and the agencies are asking for more information, the company said in the filing. The payment violated company policies, Chiquita said in the filing, and the Cincinnati- based company is taking disciplinary action.
Meanwhile, Chiquita said rising costs for paper, fuel and purchased fruit forced it to lower its estimated cost savings from internal efficiency programs. Chiquita said net savings would increase about $10 million this year compared to 2003, and increase another $10 million in 2005. Previously, it had said net savings would increase $20 million in 2004 and another $35 million in 2005.
Chiquita also said it plans to refinance $250 million in notes issued when it emerged from Chapter 11 bankruptcy in March 2002. It will start a cash tender offer for those notes and issue another set at a lower interest rate.
Shares in Chiquita closed at $19.18, down 12 cents.
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