Coastal slams Billabong deal

Group criticises retailer for taking Altamont offer without shareholder approval.

Billabong International (BBG) minority shareholder Coastal Capital International has criticised the retailer for going ahead with a $325 million recapitalisation plan from backer Altamont without shareholder approval, The Australian reports.

According to the newspaper, Coastal said the group was "unwisely proceeding with a rushed Altamont transaction on extremely unfavourable terms, when there is an opportunity to improve the transaction significantly by being patient, delaying a decision and fully evaluating competing proposals".

The deal would dilute value for existing shareholders and should require their approval as a prerequisite, Coastal said, The Australian reports.

Billabong has struck a refinancing deal with United States private equity firm Altamont, but hedge funds Centerbridge Partners and Oaktree Capital have offered a rival recapitalisation bid they claim would see the retailer up to $143 million better off.