Reuters: Global Markets: Shares in takeover target Billabong hit record low, halted

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Shares in takeover target Billabong hit record low, halted Mar 21st 2013, 02:10 Tweet Share this Email Print Related News Billabong posts $550 million loss, cuts 2013 forecast Thu, Feb 21 2013 Exclusive: Compuware, after rejecting Elliott bid, explores sale Thu, Feb 21 2013 Analysis & Opinion Social media regulatory guidance for U.S. banks: a road map for the finance industry Future higher ethical standards will judge today's conduct, compliance experts say Related Topics Investing and Taxes Simplified » Hot Stocks » Asian Markets » A Billabong employee opens the company store in central Sydney August 27, 2012. Credit: Reuters/Daniel Munoz SYDNEY | Wed Mar 20, 2013 10:10pm EDT SYDNEY (Reuters) - Shares in Australian surfwear brand and takeover target Billabong International Ltd (BBG.AX) tumbled more than 20 percent to an all-time low on Thursday amid concerns about the status of two rival $544 million bids for the company. Billabong, which has been struggling with big losses, has been in talks with two takeover suitors - private equity firm Altamont Capital Partners, led by Billabong's former U.S. boss Paul Naude, and clothing group VF Corp (VFC.N). Due diligence on the bids, pitched by both groups at A$1.10 a share, was expected to be completed by the end of the month. Shares in Billabong, whose brands include its namesake as well as Von Zipper and Element, sank to an all-time low of A$0.63 and last traded down 14.2 percent at A$0.695, before being placed on a trading halt at the request of the company. "This one has got people concerned, we've seen four bids already that have all been withdrawn at the due diligence stage," said Michael McCarthy, chief market strategist, CMC Markets. "The market had more confidence around these bids because they're coming from company insiders, who the market felt would be less likely to fall away in the due diligence process, but the market is obviously nervous ahead of this announcement." Billabong said the trading halt was needed so it could "investigate the reason for the trading levels", without providing any further detail. The company had a tumultuous 2012, alienating investors after rejecting a A$3.30 bid by TPG Capital TPG.UL in February as too low. Subsequent offers of A$1.45 from TPG and Bain Capital were withdrawn after due diligence. Billabong has sold off key assets and replaced its chief executive in the past year as a result of profit downgrades. It posted a net loss of A$536.6 million in the half year to end December and cut its guidance for the full year. ($1 = 0.9626 Australian dollars) (Reporting by Lincoln Feast and Thuy Ong; Editing by Stephen Coates) Investing and Taxes Simplified Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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