Billabong International's board of directors announced yesterday that it has rejected a revised takeover offer by TPG Capital, a subsidiary of Texas Pacific Group. The new proposal calls for the same indicative price of 3.00 Australian dollars per share that the American equity fund had offered before Billabong came out with a new strategic plan on Feb. 17. The only major change is the fact that TPG has accepted Billabong's sale of a major stake in its watch subsidiary, Nixon, to another fund and to its management. Billabong said that its major shareholder, Gordon Merchant, feels that the price offered by TPG is “significantly below the underlying value of the company.” He and his advisers – Goldman Sachs and Allens Arthur Robinson – have been discussing the matter with TPG, and the discussions are still going on. TPG's cash offer values Billabong at A$765.3 million (€611.5m-US$820.1m). Billabong noted that its sale of Nixon valued that brand at US$464 million, or 9.2 times its earnings before depreciation and amortization (Ebitda).

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