Thanks to a media report in The Australian Financial Review claiming that private investment firm TPG was about ready to pull out of its purchase of Billabong, shared slid so low that trading had to be stopped on Thursday, October 4, 2012, according to a story on ABC News.
TPG has refused to comment on a media report claiming it is considering pulling out of its $700 million dollar takeover bid. . . Billabong shares slumped more than 18 per cent to $1.075 before the company requested and was granted a trading halt by the ASX due to the market speculation.
AFR now says that TPG is still in the game however, they are looking very closely in several areas.
Concerns about Billabong’s earnings forecasts and the strength of its core brand have prompted private equity suitor TPG to express serious doubts about its $695 million approach. . . The Australian Financial Review revealed online yesterday that TPG was considering walking away from the long-running pursuit of the surf and board sports company.
Follow the jump to read Billabong’s official response to the AFR story. There has to be light at the end of the tunnel somewhere. Sadly, it’s not in view yet.
[Link: Australian Financial Review via ABC News]RESPONSE TO MEDIA REPORT
GOLD COAST, 4 October 2012: Billabong refers to an article on afr.com today which states that TPG International LLC (TPG) is said to be considering withdrawing from the sale process for the company, but that no formal decision to do so has been made. The report quotes unnamed sources.
Billabong advises that TPG has confirmed that it has not withdrawn from the sale process. As part of its due diligence investigations, TPG and its advisers have expressed concerns in relation to some issues, however discussions in relation to those matters are continuing.
Billabong has stressed in each of its previous announcements in relation to the sale process that there is no guarantee that any transaction will eventuate out of the process or that the Board will recommend any proposal, and that continues to be the case. Billabong will update the market further as and when required.
