Billabong insists TPG deal is still on the table - sportstextiles: Lea SportsTextiles

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Billabong insists TPG deal is still on the table

04/10/2012
Billabong has released a statement to say its talks with private equity firm TPG Capital are not over, after the surfwear brand’s shares plunged on rumours that the deal had fallen through.

Texas-based TPG, the last remaining bidder, was considering formally withdrawing its takeover bid after weeks of due diligence, according to the Australian Financial Review.

However, Billabong countered that the deal, worth $700 million, was not over but that "TPG and its advisers have expressed concerns in relation to some issues".

If TPG were to withdraw its offer of A$1.45 a share, shareholders would be at the mercy of new chief executive Launa Inman's recently outlined four-year plan to simplify the business in the hope of reviving falling sales and restoring profitability.

Billabong snubbed a more generous TPG offer of A$3.30 a share in February.

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