The share price of Australian clothing brand Billabong plummeted by almost 50 per cent after takeover talks regarding the firm fell through.
Stocks were down by as much as 58 per cent at one point today (June 4th) on the Australian Stock Exchange.
However, by the close of the index they had recovered to 0.23, which is a drop of 49.45 per cent on the start of the day.
One takeover bid of the company is being led by its former US head Paul Naude along with private equity firm Sycamore Partners. Another offer has been tabled by Altamont Capital Partners.
Evan Lucas, a strategist with IG markets, stated the falling through of the deal was the "worst fear" for the firm, adding: "They are now in the situation where they are going to have to be completely refinancing."
He noted this is also going to lead to the share price of the company being diluted.
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