Billabong suspends shares as talks roll on

SHARES in troubled retailer Billabong have been suspended indefinitely so it can continue takeover talks with two potential suitors.

The surfwear company's shares were due to resume trading on Thursday after it requested a trading halt earlier in the week to deal with the takeover proposals.

"The company requests that the suspension remain in place until such time as the company is able to make an announcement in relation to such negotiations," Billabong said in a statement on Thursday.

Billabong is in talks with a consortium led by US-based Billabong executive Paul Naude and buyout firm Sycamore, which made a $1.10-a-share offer for the retailer in December.

That bid was matched by another consortium made up of VF Corporation - owner of The North Face and Timberland outdoor clothing brands - and US-based investment firm Altamont Capital Partners matched the $1.10-a-share offer in January.

Billabong had originally expected talks with the consortiums to conclude at the end of March after they completed due diligence on the retailer's books.

But there has been speculation this week that the two bidders could slash their offers to between 70 and 80 cents a share.

Billabong has received six takeover offers since early 2012, but none have succeeded.

VF Consortium has said it hopes to Billabong to expand its sportswear lines.

Altamont is interested in the surfwear retailer's other brands and related assets.

In February, Billabong plunged into the red with a $536.6 million first half net loss.

The struggling company, which is undergoing a major restructure, also downgraded its underlying earnings forecast for 2012/13 to between $74 million and $85 million.

Billabong's shares last traded at 73 cents.

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