Billabong receives fresh takeover bid Billabong has confirmed a A$556m offer from a consortium led by company executive Paul Naude, the latest in a string of attempts to purchase the struggling Australian surfwear retailer. The consortium also includes Sycamore Partners, a US-based private equity firm, as "cornerstone equity investor" and Bank of America Merrill Lynch, which is acting as lead debt financier, Billabong said on Wednesday. Shares in Billabong sank following the announcement, dropping 11 per cent to A$0.87, well below the offer price of A$1.10 a share. The company had requested a trading halt on Monday pending an announcement. Billabong also lowered its earnings forecasts for the year ending June 2013. South Africa-born Mr Naude, head of Billabong's North America division, temporarily stepped aside in November with the aim of working on a leveraged buyout. At the time, analysts were doubtful a bid would emerge. The move follows failed separate attempts this year by private equity firms TPG and Bain Capital. TPG walked away from Billabong, which also makes ski and skate wear, in October. The latest offer is 24 per cent lower than the bid from TPG. Ian Pollard, Billabong chairman, said in a statement that the board "will continue to assess the current indicative, non-binding and conditional proposal as well as other matters that may be outside of its control as it seeks to restore the fortunes of the company." In a note written ahead of the announcement but in anticipation of a bid, analysts at Nomura said an offer of A$1.10 a share would be "materially below our long-term fundamental valuation for Billabong," although it is well above their current price target for the stock of A$0.65 per share. At Billabong's annual general meeting in October, the company said it was on track to deliver full-year earnings before interest, tax, depreciation and amortisation "in the range of A$100m-A$110m in constant currency terms." But on Wednesday Billabong cut that forecast to A$85m-A$92m, after receiving preliminary sales data for November and the first half of December. The company blamed weak sales and a "significant increase in cancellations" in Europe, as well as disappointing results in Brazil and Canada. The Gold Coast-based company has been hit hard by ill-timed acquisitions, a strong Australian dollar, and the declining popularity of its brands among young consumers. Its share price has collapsed, having traded above $18 in 2007. In August, Launa Inman, Billabong's chief executive, set out a four-year transformation plan to revive the company's fortunes, aimed at simplifying the business and improving its supply chain and e-commerce operations. Since then shares have fallen 35 per cent.