Infront Owner Wanda Looking To Grow Storm Extends Deal With Crown Resorts Leeds Rhinos Profits More Than Double Dalian Wanda Buys Ironman For $650M Qantas Extends Deal With ARU Expert Predicts NRL CEO Will Deliver Paddy Power, Betfair Announce Merger Int'l TV Rights Auction Starts Strong AFL Backs Former Player Langford CSL To Become Largest Sports Company
Enter amount in full numerical value, without currency symbol or commas (ex: 3000000).
SBD Global/January 16, 2013/Finance
Takeover By VF Corp. Could Result In Billabong Break-Up
Published January 16, 2013
VF BID HAS LEGS: In Sydney, Colin Kruger reported analysts said that the VF/Altamont bid "has a lot of credibility." Deutsche Bank analyst Michael Simotas said, "We have long thought the Billabong brands would be a sensible fit for VF Corp. given its attraction to global brands, which are not broken but have potential to improve and its other investments in the action sports space (Vans and Reef)." The company's shares rose as much as 14.2% after emerging from a trading halt late Tuesday morning. They were recently up 12.4% at A$0.95. JP Morgan retail analyst Shaun Cousins said, "We think this is a positive development for BBG, now with two credible private equity and industry bidders" (SYDNEY MORNING HERALD, 1/15). In N.Y., Gavin Lower wrote on the WALL STREET JOURNAL's Deal Journal Australia blog VF Corp. is "no stranger to bidding for brands that appear to have lost their way, or face more intensive competition." Its $2.3B bid for Timberland in '11 came at a time when the boot maker was "grappling with rising costs of raw materials, labor and transportation costs." Parallels can be "easily drawn between the pressure facing Timberland then and Billabong now" (WSJ, 1/15).