Billabong International Limited said that its talks with bidder TPG International LLC continue despite a recent press report to the contrary that sent shares of the Austrailian action sports company plummeting by nearly a quarter on the Australian Stock Exchange (ASX).
“Billabong advises that TPG has confirmed that it has not withdrawn from the sale process,” Billabong said in a statement released by Company Secretary Maria Manning early Thursday. “As part of its due diligence investigations, TPG and its advisers have expressed concerns in relation to some issues, however discussions in relation to those matters are continuing.”
The ASX halted trading in Billabong stock early Thursday after a news site reported TPG would withdraw a $700 million bid for the company sent its stock prices falling. The media report sent shares of Billabong tumbling to as low as A$1.02, well below TPG’s A$1.45 offer price and down as much as 23 percent. BBG shares were trading for more than A$4.00 per share in November, 2011.
