The shares of surfwear seller, Billabong fell on the stock market after one of the two potential investors in the country withdrew its bid to take over the company.

One of the two private equity firms that was interested in taking over Billabong has withdrawal its offer to acquire the stake in the company. The shares prices fell as shareholders were disappointed that one out of two offers have been withdrawn.

Billabong had informed its shareholders that it has received a second takeover offer from an unnamed private equity firm only weeks after it had received a similar offer from private equity firm TPG. Both the offers were valuing the company at $694.5 million or $1.45 per share, which is higher than the current market prices of the shares.

Billabong announced that the second bid has been withdrawn and added that neither of the bids reflect the fundamental value of the company. However, the company indicated that it has started the formal process to determine if it has get a higher acquisition deal from the potential investors.

The shares of Billabong were trading 7.6 per cent down at $ 1.335 this afternoon at the time of reporting.