Gold Coast Fined For Salary Cap Breach Marketing Symposium: Global Sports Events Kazakhstan Seeks Foreign Investment Bochum Abandons Plan To Save Money NZRU Cancels Match In Singapore Cargiant, QPR Battle To Build Homes McIlroy Takes Time To Focus On Lawsuit PSG's Biggest Revenue Stream Is 'Other' Stadium Roof Would Cost Up To $307M Adidas Mulling Reebok Sale
SBD Global/December 20, 2012/FinancePrint All
The directors of Australian surfwear brand Billabong have "ended some of the uncertainty around the stock" with confirmation they still have a A$527M ($553M) takeover proposal to consider from Senior Exec Paul Naude, according to Colin Kruger of the SYDNEY MORNING HERALD. The news "did little for investors' moods," though. Shares dumped to below A$0.90 -- well below the conditional A$1.10 per share offer from Naude’s consortium -- due to "uncertainty over the bid, and a profit downgrade announced this morningdnesday that could halve the company’s reported earnings this year." Billabong also said that asset value writedowns are "being considered for its interim results in February." This could lead to the company "reporting yet another loss this year." Billabong "came close to losing its third potential bidder in as many months" after details of the latest offer were made public on Monday. Combined with profit downgrade, this "breached conditions of the offer" from Naude and his associates -- N.Y.-based Sycamore Partners and Bank of America Merrill Lynch. A letter from Naude to Billabong "confirmed the deal is still on the table" (SMH, 12/19).