who knows what and when, page-16

Todays AFR article:


EDITED BY SARAH THOMPSON AND ANTHONY MACDONALD
Billabong International has been halted from trading as its shares were down heavily on Thursday morning.

Billabong shares had dropped 11.5¢, or 14.2 per cent, to 69.5¢ just before midday. It was a record low and came on the biggest volume since January.

The fall comes less than a week before Billabong’s two suitors are due to put forward takeover offers.

United States-based retailing company VF Corp and private equity firm Altamont Capital Partners are up against Billabong director Paul Naude, former head of Billabong Americas, and buyout company Sycamore Partners.

However, both parties are still in the process, sources told Street Talk Online, adding the VF/Altamont combination was in due diligence meetings in Los Angeles.

VF, the owner of The North Face and Vans, wants only the namesake brand and key stores. Altamont will take the balance of the portfolio.

There is a sense Altamont is struggling to finance its side of the offer, sources told Street Talk Online.

Both groups put forward indicative $1.10-a-share proposals, but analysts estimate any bid will be lower.

Traders were speculating it could be to do with a stop-loss derivative product that triggered a sell once Billabong shares dropped through 77¢.

“Once the stocks go through these certain price points it can more trigger selling on some of these structured products,” one source said. “It’s complex, gymnastics sort of stuff.

[email protected]

[email protected]