Surfwear retailer Billabong is to allow a former board member to examine its books as part of his $A527 million takeover bid for the troubled company.
AAP reports Paul Naude is part of a consortium which includes Sycamore Partners, a private equity group based in New York, and Bank of America Merrill Lynch. He is offering $A1.10 per share.
Billabong on Monday said its board had reviewed Mr Naude's proposal and decided to allow his consortium to conduct due diligence to examine Billabong's operations and finances.
The due diligence process is expected to take up to six weeks.
AAP reports this is the fifth takeover offer made for Billabong this year and the lowest.
Billabong's share price plummeted during 2012 as its revenues slumped. Its shares were two cents higher at 84.5 cents at 10.05am (AEDT).