Naga, Many people would probably agree with the sentiments in your posting. The Bong is in trouble we all know that. They need a major rethink on their product range and design and you are right in saying that the average person does not want Billabong splashed all over the garment making the wearer a walking billboard. They are still selling $1.3 billion a year worldwide, if that were down to $100,000 I would say yes they are finished as a brand. Private Equity companies do their homework, they generally dont make mistakes and of all the ASX companies why pick BBG.
They see that is has an underlying value and has potential to make them money otherwise there is little or no point. The games and tactics are part of the intelligence gathering process, testing the waters to see exactly what they can and cannot get away with here in Australia. As I have previously mentioned there has been much discussion on how wrong this takeover is, how many codes have supposedly been broken by Directors and suitors, yet the regulators have said amd done nothing amid all this protestation and I dont have an answer to that one but we know now that it is legal and lawful to make any ambit offer that is not a real bid and then downgrade each subsequent offer and even withdraw the offer completely and opt for a capital injection instead. The complete and absolute silence from the Directors one would assume would raise other questions about keeping the market informed but again nothing has been questioned. Billabong is Sycamores FIRST Aussie Target, they did not come all this way circling the Bong as their deal maker and you can assume they have other targets in mind but are setting the precedents for future deals with the Bong leading the way for how the others will be played out. Time is definintely running out for BB and I am reasonably sure the Directors will buckle at the knees and cave in to mounting pressure and take Sycamores money to bail them out whether that is 100% of BB and move it offshore, 77% shareholding and keep it still listed in Australia intact or opt for my proposal where the -Australian and New Zealand operations are separated from the group and Sycamore owns 77% of the rest of the world BB operations and will eventually delist the Australian company and move offshore. Something will happen a deal in some form or another will be done hopefully in the very best interests of shareholders, staff and Australia. If a deal does not eventuate and that is too hard to call more than likely BB will possibly fall into Administration and Sycamore will definitely buy the remnants for very little which could still be part of their strategy. I read somewhere that BB was apparently about to run out of money in the middle of May, not sure if it was in the AFR or some other paper. I dont know where these things come from. People are still shopping in their stores so money is still coming in.
Have faith that the right outcome will eventuate because we can do no more.
Add to My Watchlist
What is My Watchlist?