Looks like analysts were right both ways when they guessed last week that Billabong was either looking to raise more money or going to announce a lower profit outlook thanks to the flailing American clothing market, according to a stories on Reuters, The Australian and The Sydney Morning Herald.
Australian surfwear retailer Billabong International (BBG.AX) is looking to raise A$290 million ($217.6 million) to pay down debt, with a share sale priced at a 29 percent discount to its last trade. . . Billabong said on Monday it was raising the money through a fully underwritten 2-for-11 rights offer to institutions, at A$7.50 a share, worth A$200 million, and a matching offer to retail shareholders, which would raise up to A$90 million. . . The company has adopted a six-month freeze on hiring new staff across all markets and will not replace staff who leave the company.
[Link: Reuters and The Australian]
