Business news : Billabong Says Merger Talks Ongoing

Billabong International Ltd said it remains in talks with two groups exploring $544 million bids for the company. The statement came after Billabong had asked for a trading halt to investigate why its shares had fallen more than 20 percent earlier on Thursday.

The decline exacerbated fears about the status of the bids.

It has received matching bids of A$1.10 a share. The first was from a consortium of private equity firm Altamont Capital Partners and VF Corp, and another from Billabong's former U.S. boss Paul Naude and private equity firm Sycamore Partners. Due diligence is expected to be completed by the end of the month.

Billabong's full statement follows:

Billabong International Limited (Billabong or the Company) notes the significant levels of trading in its shares today prior to it obtaining a trading halt. Billabong is not aware of the reasons for that increased level of trading, but notes an article in today's The Australian Financial Review referring to the bid process for the Company and to a Credit Suisse research analyst report in relation to the Company.

Billabong confirms that the process for the change of control proposals previously announced is ongoing and that both of the consortia who have submitted indicative proposals remain in the process.

The Company confirms compliance with the listing rules and, in particular, listing rule 3.1.

( Source Billabong through SportsOneSource )

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