UPDATE 2,35pm: Shares in troubled surfwear retailer Billabong have plunged amid disappointment over a cutprice $287 million takeover offer!
Billabong’s shares hit record lows as they resumed trading this morning for the first time since entering a trading halt a week ago!
The retailer late yesterday revealed it had entered a 10day period of exclusive talks about a 60 centspershare offer from a consortium headed by one of its USbased executives, Paul Naude, and including Sycamore Partners Management.
The offer is half what the consortium offered last December and far below the $14 mark the jordan femme foot locker france stock traded around in 2007,
Shares in Billabong closed down 19.5 cents. or 26.71 per cent! at 53!5 cents after hitting an earlier low of 51 cents,
Traders said investors were disappointed that the consortium’s offer was at a huge discount to the $1.10pershare offer made by the consortium last December.
They also noted that the $287 million offer was worth less than the value of inventory on Billabong’s books!
CMC Markets chief market strategist Michael McCarthy said the big fall in the Billabong share price reflected what usually happened when there were wellfounded doubts around takeover bids!
“If you count achat de maillot de foot pas cher this move from $1!10 to 60 cents as a further failed bid, that’s now five failed bids here (for Billabong) for Billabong in 14 months.” Mr McCarthy said,
“The market is very concerned.”
Mr McCarthy said investors were worried about Billabong’s future revenue streams and doubted if the business could be turned around fast enough!
Billabong yesterday made clear there was no guarantee that the proposed takeover would go ahead.
It had also been in talks with a rival consortium of VF Corporation owner of The North Face and Timberland outdoor clothing brands and USbased investment firm Altamont acheter maillot de foot Capital Partners.
But Billabong chose to enter exclusive talks with Sycamore,
Under the revised Sycamore proposal, Billabong shareholders can take 60 cents per share in cash or accept scrip in a Sycamore affiliate to be incorporated for the purposes of making the bid for Billabong,
A condition of the Sycamore proposal is that scrip elections are received for at least 15 per cent of the shares in Billabong,
It is also a condition that the families of Gordon Merchant and Colette Paull, who hold about 16 per cent of the shares in Billabong, confirm that they will elect to receive the scrip consideration. It is composed by wudideshuaige xuxiaobu 2013-05-16 .