If the Paul Naude driven Sycamore Partners deal for Billabong goes through company founder Gordon Merchant would lose about $960 million in value, according to a story on Goldcoast.com.au.
At the company’s peak in 2007, his shareholding was worth close to $1 billion but, based on the 60 a share offer, he will have $960 million wiped from his 15 per cent stake, now worth about $40 million. . . The deal may save the beleaguered retailer from annihilation but it’s a massive plunge from the $4 billion the company was once worth in 2007, when its shares touched $18.51. . . It will now be up to shareholders to decide whether they want to end their years of takeover fatigue, accept the offer and get out while they can.
Hey, but on the upside that $960 million loss is really only on paper. . .
[Link: Goldcoast.com.au]
