Billabong’s US head plans takeover
19 Nov 2012
Australian surfwear maker Billabong shares soared today after the head of its US unit said that he was considering tabling a bid for the struggling company.
Billabong shares surged by 17.6 per cent to 87 cents after the announcement before closing at 81.5 cents.
Paul Naude, director and president of Billabong's US unit, informed the board that he intended to stand temporarily aside from his post, while he tables a leveraged buyout of the company.
''Mr Naude's decision was not solicited by the board of Billabong and Mr Naude has confirmed that there is no agreement, arrangement or understanding with any member of the board or Billabong's senior management team in regard to his proposal," Billabong said in a statement.
South African-born Naude, a former professional surfer, is yet yo secure funding for the deal, and analysts are sceptical whether he will come with a firm bid without doing due diligence.
A lifeline for the struggling surfwear company appears to be bleak, especially after two private equity firms recently walked away from a deal.
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