Billabong takeover bids collapse

  • Takeover talks between with two potential bidders for Billabong collapsed on Tuesday.

    As a result, shares in the Australian surfwear maker plummeted 58 percent to a record low of $0.18 on the Australian Stock Exchange.

    The bidders are private equity firm Sycamore Partners led by its former U.S. head Paul Naude and Altamont Capital Partners.

    The two consortiums are reportedly now pursuing a recapitalization deal.

    Billabong said it was looking into the possibility of asset sales with proceeds going towards repaying debts.

    The firm has also lowered its profit forecast for the financial year to June 30 and expects to make a profit of $65 million to $71 million.

    The figure compares to an earlier projection of $71 million to $78 million.

    Billabong has already sold assets, shut down stores and replaced its chief executive in a bid to cut costs and revive the business.

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