BILLABONG SHARES SLUMP AMID DAMNING SPECULATION

Written on the 9 October 2012

BILLABONG SHARES SLUMP AMID DAMNING SPECULATION

BILLABONG (ASX: BBG) shares plummeted in value today amid reports potential suitor TPG Capital is considering withdrawing its offer to buy the embattled Gold Coast surf wear company.

The share price slumped 18.63 per cent to $1.075 today, nearly 40 cents per share below the proposed takeover price.

The latest slide, which continues two years of woe for BBG shareholders, came after the Australian Financial Review reported sources close to the company as saying TPG was close to walking away from the due diligence process.

The private equity firm, which made a $694 million for BBG at $1.45 per share, has until October 24 to examine the financial state of the company.

AFR quoted a source as saying “tools were put down 10 days ago’’ after TPG reviewers assessed BBG’s core business to be “in decline’’.

Billabong has reacted to the speculation in an announcement to the stock exchange.

"TPG has confirmed it has not withdrawn from the sale process. As part of its due diligence investigations, TPG and its advisers have expressed concerns in relation to some issues, however discussions in relation to those matters are continuing."

The company, which was also forced to respond to a "speeding ticket" from the ASX, maintained it was under no obligation to accept any takeover offer.

The news comes only two weeks after another private equity group, the Boston-based Bain Capital, took just a fortnight of preliminary due diligence to scrap plans of moving on Billabong.

Billabong earlier this year announced its first loss ($276.6 million) since it was listed in 2001. Chief executive officer Launa Inman unveiled a rescue plan for BBG in August and insists the company’s future will not be affected by takeover speculation.


Latest News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 p...

SONAND TURNS THE TIDE AT SURFSTITCH

SURFSTITCH (ASX:SRF) has reduced its losses in the first half of FY17 as new CEO Mike Sonand executed his turnaround ...

EUREKA IMPROVES WHILE MANAGEMENT REMAINS UNIMPRESSED

EUREKA Group has collected the gains on its 'buy and build' strategy to achieve a net profit of $6.29 mill...

Related News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

FASHION RETAILER'S TAKEOVER IN DOUBT AS PROFIT CLIMBS

IN the thick of takeover talks, Specialty Fashion Group (ASX: SFH) worked hard to cut costs and see its bottom lin...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter