Surfwear giant Billabong has knocked back two takeover bids from private equity group TPG Capital.
TPG had put forward a $3 a share bid, but Billabong said yesterday that it rejected this offer as it did not reflect the value of the company.
In a Billabong statement on the ASX today, company secretary Maria Manning, said that TPG then revised its offer to $3.30 a share, but this was still not good enough.
“The board has considered this revised price and has unanimously determined that it still does not reflect the fundamental value of the company in the context of a change control,” Manning said. “As a result, discussions between the two parties have ceased.”
Manning said the board is still prepared to engage with TPG, or any other party that makes a proposal which is in the best interests of the company and its shareholders.
TPG was also made aware of a letter Billabong received from the lawyers of Billabong's non-executive director and major shareholder, Gordon Merchant, and non-executive director Colette Paull.
The letter said that neither Merchant or Paull support Billabong taking any steps to assist or facilitate a proposal by TPG, even if the price TPG offered was $4 a share, as this 'would still represent a discount in the true value of Billabong shares'.