TPG to conduct due diligence on Billabong: Midday roundup

TPG has been granted permission to conduct due diligence on Billabong, following an offer from the private equity group to buy the struggling surfwear retailer.

In a statement this morning, Billabong said the move would hopefully reduce the conditionality of the TPG proposal and improve the company’s understanding of the chain’s value.

But it also said the move doesn’t guarantee a deal.

“In fact, the board of Billabong does not believe that the proposal reflects the fundamental value of Billabong in the context of a change of control transaction,” the company said.

TPG has offered $1.45 a share for the company – 32% higher than the company’s last closing price.

It originally offered $850 million earlier this year, which Billabong rejected.

Carbon tax complaints falling: ACCC

The number of complaints received every day by the Australian Competition and Consumer Commission relating to the carbon tax has continued to fall, the agency has said.

The ACCC says while it originally received about an average of 63 complaints per day when the tax came into effect, it now only receives about 45.

It also says this is relatively low compared to the amount of complaints received about other matters.

“The majority of contacts to the ACCC have been about general price increases not specific complaints about carbon price misrepresentation,” the ACCC said.

“This is especially the case with electricity complaints where cost increases reviewed by the ACCC have been of the order expected. The sectors that continue to record the most complaints are the energy, landfill, refrigerants, and building and construction sectors.”

Shares rise after strong offshore leads

The Australian sharemarket has opened higher this morning, after strong offshore leads following remarks from European Central Bank chief Mario Draghi that it would do “whatever it takes” to preserve the strength of the Euro.

The benchmark S&P/ASX200 index was up 32 points or 0.8% to 4180.2 at 12.00 AEST, while the dollar remained at $US1.03c.

In the United States, the Dow Jones Industrial Average rose 211 points or 1.7% to 12,887.

Caltex closure out of government’s hands, NSW Premier claims

New South Wales premier Barry O’Farrell has said the closure of a Caltex refinery is out of the NSW Government’s hands.

The closure will result in the loss of as many as 600 jobs.

“The decision has been made, it’s been two years in the making,” O’Farrell told Fairfax Radio.

“Regrettably we’re going to see anywhere between 100, (and) as the company says, 600 estimated jobs lost.”

“That’s bad for NSW and just reiterates our concern about creating the economic conditions in NSW to get others to invest here.”