Billabong Shares Rode New Highs with $526M Takeover Bid
By Esther Tanquintic-Misa | December 17, 2012 5:04 PM EST
Shares of beleaguered Australian retailer Billabong International rode on a high early Monday morning before being placed on a trading halt on rumors of a $526.8 million takeover bid by a consortium led by former director Paul Naude.
Billabong shares rose to as much as seven per cent on Monday, fuelled by reports Mr Naude's group had submitted a $1.10 a share takeover offer. When the trading halt began at 1211 AEDT, the stock was already 4.5 cents, or 4.8 per cent, higher at 98 cents.
At 12.11pm, the stock, allowed to trade for more than an hour, was placed under trading halt, after Billabong told the Australian Stock Exchange it planned to make an announcement regarding "a possible change of control proposal."
Mr Naude, Billabong's president in the Americas and a member of the company's board, voluntarily stepped down from his position in mid November as he attempted to try and take control of the surf retailer.
"I can't confirm or deny anything," Craig White, Billabong's chief financial officer, told Bloomberg News before the trading halt announcement.
The trading halt will remain for two days, or until Billabong requests it be lifted.
Mr Naude owns 0.2 per cent of Billabong.
Billabong had received three takeover offers this year alone, from private equity firms TPG and Bain Capital. TPG lodged two offers, the first was denied because according to the surfwear retailer, it undervalued the company. The second offer was voluntarily withdrawn by TPG this time during the due diligence phase.
Bain Capital likewise withdrew during the due diligence process.
To contact the editor, e-mail:
Most Popular Slideshows
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
- Kate Middleton & Prince William Taking a Time Off in August Amidst Miscarriage & Adopting a Child Claims
- Kate Middleton & Prince William Vacation Plans: Visit Prince Charles & Camilla Parker-Bowles
Join the Conversation
- Apple iPhone 6 Release Date Update: 6 Most Wanted Feature Upgrades for Next iPhone
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Twin Malaysia Airlines MH370, MH17 Aviation Disasters Create Phobia Among Travellers
- HTC One M8 Windows Phone to Launch for Verizon; Release Date, Price, Five Fresh Features to Anticipate for New Smartphone
- OnePlus One vs. Moto X+1 – Early Specifications, Release Date and Price Faceoff
- Galaxy Note 4 Release Date Ahead of iPhone 6 Sept 2014 Debut; Specced-Up but Remains Plastic-Wrapped – Reports
- LG G2 Android 4.4.4 KitKat Guide: When to Hit Your Region and How to Install