Shares in Billabong have dived after the troubled surfwear retailer said one of two private equity firms interested in taking over the group had withdrawn its offer.
Billabong shares were 11 cents, or 7.6 per cent, weaker at $1.335 by 1203 AEST.
IG Markets analyst Cameron Peacock said the share price drop indicated shareholders were disappointed the second takeover offer had been pulled off the table.
"They are a struggling retailer," he said.
"As a shareholder the only reason you would have been comfortable holding this stock was because it was under takeover offer.
"I'm surprised it is only down seven per cent."
Billabong told investors on September 6 it had received a second takeover offer from an unnamed private equity firm, just weeks after private equity firm TPG made a bid.
Both offers valued Billabong at $694.5 million, or $1.45 per share.
Billabong said on Thursday the second party to make a takeover offer had now withdrawn from the formal process.
The retailer had said both offers failed to reflect the fundamental value of the company, but had begun a formal process to evaluate whether a higher takeover offer could be secured.
TPG remains in discussions with Billabong.
"The board of Billabong reiterates there is no guarantee that, following this formal process, a transaction will be agreed or that the board will recommend any proposal," the company said.