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Billabong receives alternative proposal


Troubled surfwear retailer Billabong has received an alternative takeover offer from a consortium comprising US private equity firm Altamont Capital Partners and retailer VF Corporation.

The proposal matches a $1.10 cash per share offer for all of Billabong's shares that the retailer received on December 19 from the Sycamore consortium, and is also a confidential, indicative, non-binding takeover offer.

Billabong said it will also grant the Altamont/VF consortium the opportunity to conduct a non-exclusive due diligence process after agreeing to an acceptable confidentiality agreement.

Billabong said the process to evaluate whether the proposal meets terms the retailer's board can recommend and be secured will take six weeks.

"The Board of Billabong reiterates that there is no guarantee that an acceptable binding proposal will be forthcoming from either the Sycamore Consortium or the Altamont/VF Consortium," Billabong said in a statement on Monday.

"In the meantime Billabong shareholders do not need to take any action in relation to this matter."

In December 2012 Billabong downgraded it's earnings forecast after weaker-than-expected sales during October and November and received five takeover offers during 2012.

Billabong shares closed 1.75 per cent lower at 84.5 cents on Monday prior to the announcement of the offer.