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April 10th, 2013 
Peter Nolan
Updated
Shares in surfwear maker Billabong have slumped as much as 30 per cent, after a potential buyers lobbed a much lower takeover offer than their initial approach.
Billabong hit a record low of 51 cents after resuming trade this morning, after it revealed late yesterday that it was entering exclusive discussions with one bidder that is offering 60 cents a share, down from a $1.10 initial approach.
The takeover proposal from a consortium of former Billabong executive Paul Naude and private equity firm Sycamore Partners values the company at $300 million – 45 per cent lower than its prior offer and well down on other bids which valued the company at up to $850 million a year ago.
The consortium will now hold exclusive discussions with Billabong for up to 10 days, but have already been advised that two of Billabong’s major shareholders, Gordon Merchant and Colette Paull, are likely to accept the offer unless another party makes a higher bid.
However, Billabong notes that there is no guarantee the transaction will proceed, and neither it nor the bidders are under any obligation to close the deal.
The company had been in a trading halt for almost a week, while it considered the most recent takeover offers.
Billabong shares were trading down 26 per cent at 54 cents by 11:44am (AEDT).
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Source Article from http://www.abc.net.au/news/2013-04-10/billabong-shares-slump-on-discounted-offer/4620450
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