The Australian Shareholders' Association has distanced itself from Billabong International Limited
(ASX:BBG) minority shareholder, Coastal Capital International, which is seeking a board spill, according to media reports.
ASA chairman Ian Curry reportedly says the association did not support Coastal’s call for the removal of Billabong directors and was not opposed to a $395 million debt and equity package offered by the Altamont consortium.
Coastal says Billabong is 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.
Coastal says the deal would dilute value for existing shareholders and should require their approval as a prerequisite.
Billabong booked a net loss of $863 million for fiscal 2013.
