According to a report from Deutsche Bank Australia, Billabong could be a prime target for a takeover, according to a story in The Australian.
Retail analyst Alexi Baker-McLennan said in a note to clients: “We think Billabong could be an attractive LBO (leveraged buyout) target. . . “The company is trading 30 per cent below 12-month highs, highlighting that the stock could be taken out below this level with a reasonable premium. . . “An LBO of Billabong would not be for the faint-hearted. Billabong is midway through integrating a number of acquisitions, it is rolling out retail stores requiring significant further investment, it remains heavily exposed to currency and the category is undergoing significant structural change.
What a nice way to help bump up a stock price. Analysts are good that way.
[Link: The Australian]
