By Gillian Tan
SYDNEY--U.S. consortiums vying to acquire Australian surfwear
retailer Billabong International Ltd. (BBG.AU) have been set a
March 28 deadline to make final bids, a person familiar with the
matter said.
The former head of Billabong's Americas division, Paul Naude,
teamed up with private equity firm Sycamore Partners Management in
December to make a 526.8 million Australian dollar (US$542.6
million) offer for the company. A month later VF Corp. (VFC), the
owner of Timberland and The North Face brands, joined up with
Altamont Capital Partners to match the A$1.10-a-share offer from
Mr. Naude's group.
Billabong is battling to reverse an earnings decline triggered
by the global slowdown, a strong Australian dollar that has diluted
overseas income, and the dwindling appeal of its core brands among
younger people. Sales in the Americas and Europe have fallen
sharply as cautious consumers rein in spending or switch to other
brands, leading to a build up of surplus clothing stock.
Shares in Billabong, which is being advised by Goldman Sachs,
last traded at A$0.85.
The company announced a A$536.6 million loss in the half year to
Dec. 31, after recording a A$567 million impairment charge attached
to the value of its brands and investment. It also cut its earnings
guidance for the second time in three months.
-Write to Gillian Tan at gillian.tan@wsj.com
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