Billabong International said that it has received a second conditional acquisition offer. It did not name the party, but it was later identified in several reports as Bain Capital, the U.S. investment firm. The Australian surf company said the new potential bidder was proposing a cash consideration value of 1.45 Australian dollars per share, the same valuation as in the offer that Billabong received from Texas Pacific Group International (TPG) in July.

That offer was deemed insufficient by the board, which still allowed TPG to start conducting due diligence. As in the case with TPG, the board said that the second offer did not reflect the fundamental value of Billabong in the context of a change of control transaction, but it struck a confidentiality agreement and allowed the second interested party to conduct due diligence.

Billabong, which launched a transformation strategy under new management a few weeks ago (see our latest issue), added that it was now evaluating whether a change of control could be obtained at an adequate price at all. The new offer of A$1.45 per share was only a little higher than the A$1.27 price posted on the stock exchange by Billabong after the second expression of interest, but the stock market price has since risen to around A$1.45. Analysts said that the second offer could help to drive up the price and to ensure Billabong's sale.