By Ross Kelly
SYDNEY--Australian surfwear brand Billabong International Ltd.
(BBG.AU) has ended takeover talks with two private equity bidders,
but it is continuing to discuss potential assets sales and
refinancing opportunities.
Billabong also delivered yet another profit downgrade Tuesday,
largely blaming poor trading conditions in Australia.
Takeover talks with separate consortia involving Sycamore
Partners and Altamont Capital Partners haven't resulted in any
bids, Billabong said.
Directors are now discussing potential "alternative refinancing
and asset sale transactions" with Sycamore and Altamont, Billabong
said in a regulatory filing.
Billabong expects earnings before interest, tax, depreciation
and amortization for the year to June 30 of between 67 million
Australian dollars (US$65 million) and A$74 million. That compares
to previous guidance of up to A$81 million.
Earlier this year, both the Sycamore and Altamont consortia made
indicative offers of A$1.10 a share to secure the right to
scrutinize Billabong's books. Billabong shares last traded at 45.5
Australian cents.
VF Corp. (VFC), which was part of the Altamont group, isn't
involved in any talks on refininancing, but may remain a potential
buyer of individual brands from Billabong, a person familiar with
the matter said.
-Gillian Tan in Sydney contributed to this article.
Write to Ross Kelly at ross.kelly@wsj.com
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