In a story we posted last month regarding Billabong’s offer deadline we suggested that the deadline would pass and Billabong would be forced to consider even lower offers. That’s exactly what has happened, according to a story in the Wall Street Journal.
People familiar with the talks said both consortia [VF Corp and Naude] had cut their respective proposals below A$1.10 a share, declining to be more specific. Shares in Billabong, which is being advised by Goldman Sachs Group Inc. GS +0.02% last traded at A$0.73, having touched a record low of A$0.63 last month.
In our opinion, the longer Billabong stalls, the worse things are going to be for the beleaguered surf fashion giant.
[Link: Wall Street Journal]
Just like in surfing, hesitation will only get you worked. How come they don’t know that?
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