Billabong confirms $527m bid is still alive
BILLABONG executive Paul Naude and his associates have confirmed their $527 million bid for the embattled retailer is still alive despite today's downgrade and the offer becoming public - breaching two conditions of the proposal.
Billabong said its board is now considering the offer, and its terms, after receiving written confirmation from Mr Naude that the ''indicative, non-binding and conditional proposal from his consortium'' to acquire Billabong at $1.10 per share ''remains unchanged''.
This morning investors were worrying Billabong could lose its third bidder in as many months after the latest offer was made public, and the company slashed its earnings forecast in half, thereby breaching two conditions of the offer.
The company also flagged potential asset writedowns when its half year results are announced in February due to the deteriorating performance of the company.
Billabong's shares slumped as much as 15 per cent when trading resumed this morning and were recently trading down 10 cents, or 10.2 per cent, at 88 cents.
Read more at Brisbane Times