Affiliates of a New York investment firm have boosted their holdings in Billabong International Ltd. since informing the company in early September they would seek to oust most of its board of directors and seek changes to the company's constitution to require shareholder approval of future debt and equity financing agreements.
According to an Oct. 4 filing with the Australian Securities Exchange, Coastal Capital International, Ltd. and its affiliates invested another $1.3 million after Sept. 8 to increase their holdings in Billabong from 6.24 to 7.59 percent, or 29.9 million shares.
Coastal Capital has accused Billabong's board of presiding over the worst destruction of shareholder wealth in Australian history. In September it informed Billabong it would try to oust all its directors except founder Gordon Merchant and Colette Paull, whose significant holdings of Billabong stock closely align their interests with those of shareholders. Coastal Capital is also seeking to appoint its own representatives to Billabong's board.
