Billabong International has rejected an AUD765 million (USD821.1m) takeover proposal from buyout firm TPG Capital, and says talks continue to try and get a higher offer.
The AUD3-a-share cash bid didn’t reflect the "fundamental value" of the company, Billabong said in a statement on Monday. Gordon Merchant, the founder and largest shareholder with almost 15 percent of the stock, wouldn’t accept the price offered by TPG, the company said.
Billabong, with brands including Nixon and Element, became a takeover target after its shares slumped amid a drop in earnings. The company is selling assets, cutting jobs and closing as many as 150 stores as it battles stalling consumer demand ahead of looming debt payments.
(Source: The Sydney Morning Herald Online )