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"TPG has confirmed it has not withdrawn from the sale process.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

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter