Ann: Company Update , page-8

AKA that artlicle is very misleading in many respects
eg note the BIG "if"......
"The newspaper article, quoting Credit Suisse, said that IF earnings before interest tax, depreciation and amortisation dropped from the current guidance of $74 million for the 2013 financial year to $50 million by 2015, due to a reduction in wholesale earnings resulting from brand rationalisation, then Billabong's equity value would be zero."

Company guidance for EBITDA was $74m - $85m. $74m is the low end.
$50m is speculation on the part of the analyst


also note in a previous AFR the SAME analysts - Credit Suisse - came out with a valuation of 59c

this was despite Credit Suisse having a target price of 38c The lowest TP of all the analysts just prior to due diligence

Here are some of the other Target Prices made just before d

citi 90c (down from $1.20) Buy to neutral. offer limited chance of success
UBS 90c (down from $1.10) Buy to neutral.company would be lucky to get $1.10 per share
Deutsche ........ Hold 45% chance of takeover going ahead
JP Morgan $1.10 (offer price) up from 95c
Merrill Lynch underperform growth targets appear ambitious
CIMB securities $1.50 (was $1.60) Buy. buys Launa Inman's restructure proposal. thinks offer will be rejected given that it overlooks long term value in the business

NB most analysts do not think the sale will go through

In addition the the $500m lose was due to one off items such as a $427m impairment charge on brand and goodwill as well as various restructuring charges eg leases on shops that were closed etc