Fashion

So no, there’s been no stalling going on, but Billabong today announced that it has agreed to a request from Paul Naude and his Sycamore Consortium to extend their exclusivity offer period 10 more days until May 8, 2013.

Billabong and the Sycamore Consortium agree that both have been working constructively and with the utmost cooperation to progress the Quality of Earnings report and the potential transaction. Accordingly that extension has been granted and the period of exclusivity will now conclude on Wednesday 8 May 2013. . . It is anticipated that the extension will be adequate for the completion of the report and its consideration.

So, that means the original 10 day exclusive period (which began on April 9, 2013) has now stretched to a month, but then it appears they don’t work weekends. For the official word from Billabong, follow the jump. [click to continue…]

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The rumors rolling the Australian business press last night is that talks between Paul Naude and Billabong have stalled, but, according to a story in The Age, Billabong says this not the case.

Billabong said it is on track to update the market on the status of exclusive talks on a potential takeover bid after exclusivity period ends this evening. . . ‘‘Consistent with the ASX announcement of April 9th, Billabong will then provide a further update on the status of the proposal,” a Billabong spokesman said.. . He refuted suggestions that negotiations have been delayed by Billabong failing to provide documents to the consortium lead by Billabong executive Paul Naude. . . ‘‘The team continues to work tirelessly and cooperatively, as it has done for almost four months. Any suggestion that information has been held back is entirely incorrect,’’ the spokesman said.

That means there should be an announcement real soon one way or another. Most analysts appear to believe a deal will go through because without it, Billabong is going to need to come up with another AUS$100 million to stay afloat. Talk about being stuck between rocks and sharper rocks. . .

[Link: The Age]

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Billabong has reportedly wrapped up their exclusive talks with Paul Naude and his Sycamore Partners bakers and now it’s time for them to make a decision, according to a story in The Australian. They could make an announcement sometime today. But some analysts don’t like the deal at all.

Credit Suisse research analyst Grant Saligari has said the 60c offer is a weak one for shareholders, and he criticised Billabong’s decision to allow the Sycamore consortium to have exclusive access to its books after months of due diligence studies and without dropping any of the conditions attached to the proposal. . . The consortium has made its offer conditional on there being no material adverse change in the company’s performance, availability of funding and a minimum 15 per cent of Billabong shares being swapped for scrip in the new holding company.

Guess we’ll all know when we know.

[Link: The Australian]

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Fenway Partners, the New York-based private equity fund that owns Giro Helmet‘s parent company Easton-Bell is reportedly putting the company up for sale, according to a story on Reuters.

Based in Van Nuys, California, the company sells its products under several brands, including Easton, Bell, Riddell, Giro, Blackburn and Easton Cycling. It generated net sales of $827.2 million in fiscal year 2012.

According to the story, “people familiar with the matter” say the sale could bring as much as $900 million. Others, say it maybe difficult after a judge ruled that their football helmet arm, Riddell, may not have sufficiently warned players about the danger of concussions while wearing the helmets.

[Link: Reuters]

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