billabong may face class action

http://www.businessspectator.com.au/news/2013/8/27/industries/billabong-may-face-class-action

The Oaktree-Centrebridge debt and equity plan, which rivals another by Altamont, involves a $135 million placement at 35 cents a share and an offer to shareholders to reinvest in the surfwear company through a $32.5 million rights offer at 30 cents a share.

The pair claims the deal would save Billabong between $119 million and $143 million in interest costs, compared to Altamont's proposal to pay an average of 19.9 cents a share for new equity.

“It should not be the case in a regulated fair market that a deal of this quality, compared to the other deal, should fail,” one source close to the Centerbridge-Oaktree consortium told the Financial Review.

Meanwhile, sources close to Altamont told the newspaper Oaktree and Centrebridge have misled investors because the offer is said to contain provisions that have previously been ruled out by the Takeovers Panel.