August 26, 2013

Billabong’s Rival Bidders Just Wont Go Away

Billabong’s late-to-the-party second suiters seem desperate to recreate Days Of Our Lives in the business pages. Unable to let go, and certain that the match up is meant to be, Centerbridge Capital is pulling out all the stops with a new deal they just know will mean the company will finally see them for who they really are.

The Australian Shareholders Association (ASA), who in this instance could be seen as Centerbridge’s BFF, has stepped in to call for a hold on the Altamont deal that is underway (and has seen the share price rising) while the new deal is evaluated properly. Billabong just doesn’t know them like they do… yet.

Billabong, having given up the goods to every passing possible beau over the last 18 months, is now playing virtuous and pledging monogamy to Altamont. But that hasn’t totally stopped them eying up other offers, within the time constraints of the deal that’s in the bag. In other words, the engagement is on but before the wedding happens, Billabong just wants to see what else is out there.

All in all, it’s making the turnaround of the company increasingly difficult and adding uncertainty to leadership and direction of the company. The ASA would do well to look at what they have and where that’s likely to take them, as opposed to risking it by delaying the implementation.

More on this over at The Australian.

by Dave