Report: Billabong to make decision on diligence soon

According to a Reuters story, the Billabong board of directors will decide by Friday whether to allow private equity firm TPG Capital to conduct due diligence on the company.

TPG Capital put in a revised AUS $694 million bid (about US $713 million) for all of Billabong in the past week.

New CEO Launa Inman told Reuters that the board is taking the bid very seriously.

Billabong previously rejected a $3.30 per share cash offer for the company before its recent capital raising and stock decline. TPG’s most recent bid is lower at AUS $1.45 per share.

Billabong’s stock has rallied some on the takeover bid news, and closed at AUS $1.32 in trading in Australia Wednesday.