business spectator report

BREAKFAST DEALS: Billabong suspense

Luke McKenna27 min ago
Industries
Retail

There's been a sale at Billabong International, but not the kind the company wants. As the surfwear maker's suitor pulls back, shareholders are running for the exits. Also this morning, BHP Billiton and Hoyts Group look to North America for funding, while Seven West Media Group and Telstra team up. Macquarie Group will also be looking for clues in a Gunns test vote.

Billabong International

Billabong International shares are expected to remain suspended this morning, after takeover talks with Sycamore Partners continued into the night, according to The Australian Financial Review.

The newspaper says a deal, probably at a price sharply lower than the 60 cents a share that had been offered, is unlikely to be signed by the opening bell on Thursday.

The prospect of yet another reduction in the value of Sycamore's bid, which started at $1.10, appears to be too much for some investors to stomach.

On Wednesday one of Billabong's largest shareholders, New York-based Teachers Insurance and Annuity Association, revealed it had sold down its 6.2 per cent stake to less than the 5 per cent required to be considered a substantial holder.

TIAA, which bought in last October at between 84 cents and $1.05, was dumping shares for as little as 46 cents.

There were suggestions yesterday that Billabong's banks have been running the show since the retailer appointed corporate advisory 333 Management, a division of insolvency specialist KordaMentha.

The wait continues.