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April 2nd, 2013 
Peter Nolan 
Shares in Billabong have been placed in a trading halt as takeover talks with two suitors continue.
Source: AAP
BILLABONG’S shares have been placed in a trading halt as talks with two potential suitors drag on.
The troubled surfwear retailer says that while it had expected the talks to have wrapped up at the end of March, discussions were ongoing.
“Discussions in relation to these proposals remain incomplete and the company expects to make an announcement as and when discussions are complete,” the company said in a statement on Tuesday.
Billabong said the trading halt was needed so it could continue talks with the two bidders.
It expects the halt could remain in place until Thursday.
Two consortiums led by private equity groups have spent weeks carrying out due diligence on Billabong’s books.
A consortium of VF Corporation – owner of The North Face and Timberland outdoor clothing brands – and US-based investment firm Altamont Capital Partners expressed interest in Billabong in February.
The consortium matched an earlier $1.10-a-share takeover offer put forward by US-based Billabong executive Paul Naude and buyout firm Sycamore last December.
VF Corporation has said it hopes to use Billabong to expand its sportswear lines.
Altamont is interested in Billabong’s other brands and related assets.
Billabong has received six takeover offers since early 2012.
In February, it announced it had plunged into the red with a massive $536.6 million first half net loss.
The company, which is undergoing a major restructure, also shocked investors by again downgrading its underlying earnings forecast for 2012/13 to $74-$85 million.
Billabong’s shares last traded at 73 cents.
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