when is dd expected to be completed, page-2

the article below was published today in AFR street talk....

says both parties have 2 or 3 weeks of DD time left before a final bid will be due....

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It’s crunch time for Billabong’s latest suitors
EDITED BY SARAH THOMPSON AND ANTHONY MACDONALD

There’s no doubt Billabong’s two suitors have their work cut out making the numbers stack up for an offer at $1.10 per share.

With that in mind, it’s not surprising sources have suggested that the pre-Christmas downgrade is looming large over the due diligence process.

California-based Altamont Capital Partners and VF Corp, owner of the North Face, Vans and Lee brands, lobbed a $1.10-a-share cash offer for Billabong on January 14.

The pair matched an existing $527?million offer from Billabong director Paul Naude and buyout firm Sycamore Partners, setting the scene for a possible bidding war.

Both parties are working hard to shore up debt financing and ensure their internal numbers stack up. It should also be noted that there are still two or three weeks to go before final bids are due.

The company cut earnings forecasts, again, by about 15 per cent for 2013 last month. It’s believed the suitors are worried that the downgrade may not have gone far enough.

US private equity firm TPG Capital lobbed a $765 million bid in February last year which was rejected by the board as too low. TPG came knocking later that same month lodging another bid at the same price, and then upped its offer to $850 million.

That was also rejected as too low. TPG returned in July with a $695 million offer, as did rival private equity firm Bain Capital, but both walked away from takeover talks last October.

During 2012, Billabong downgraded earnings, sold half of its accessories brand Nixon to repay debt, closed underperforming stores, and launched a highly dilutive $225 million capital raising.

Billabong has stressed there is no guarantee that an acceptable binding proposal would eventuate from either consortium. Certainly, shareholders have expressed concern on how a separation will work in the case of VF Corp, which is keen to take only Billabong’s namesake brand.

Billabong shares closed yesterday at 94.5¢.

The Australian Financial Review