tpg makes $1.45 offer for bbg, page-56

Something i just came across. Apologies if it has already been posted.

"0152 GMT [Dow Jones] A leveraged buyout of Billabong (BBG.AU) could work at up to A$1.60/share assuming a conservative 3.0x net debt to EBITDA and 400 basis points of margin recovery, providing a 27% internal rate of return to private equity, Citi analysts say. "Billabong's attraction to TPG is clearly the possibility of turnaround - margins have more than halved, working capital is high and there needs to be a restructuring following a high level of acquisitions recently," the broker says. It rates the stock a Buy, with a A$1.45 target price. BBG is up 21.4% at A$1.335 after TPG launched a A$1.45/share takeover bid"