Billabong expected to consider confirmed offers over Easter
Surfersvillage Global Surf News, 30 March, 2013 : - - A lengthy due diligence process inside the Billabong group concluded on Thursday, and the two consortiums involved are believed to have both firmed up their earlier indicative takeover proposals.
Billabong's board is expected to meet over the Easter break to consider the confirmed offers, from the United States-based leisure wear group VF Corporation and its private equity partner, Altamont Capital Partners, and from Billabong's top US executive, Paul Naude, and his US private equity bidding partner, Sycamore Partners.
It is likely that the offers are substantially below the indicative price of $1.10 a share that was floated to Billabong by Naude and Sycamore in mid-December, and by VH Corp and Altamont in mid-January. Billabong shares eased by 2¢ to 73¢ on Thursday, and the market speculation is that offers of about 80¢ a share are possible.
Developments now hang on how much has been offered and how Billabong reacts, and the attitude of 14.5 per cent shareholder and Billabong founder Gordon Merchant will be important.
Author: The Editors