Billabong International, Australia's largest surfwear company, said talks with TPG Capital have ended after the retailer rejected a sweetened takeover offer of A$841.8 million ($1.07 billion).
TPG was prepared to raise its bid to A$3.30 a share from A$3, Billabong said yesterday.
Billabong's board unanimously decided the revised offer from the Texas-based buyout firm fell short of its value, the company said.
A letter to the board from lawyers representing Gordon Merchant, the retailer's founder and largest shareholder, said he would oppose steps to let TPG conduct due diligence even with an offer of A$4 a share, according to Billabong.
Merchant's opposition was an impediment to a takeover, said Nick Berry, a Sydney-based analyst.
