Australian surfwear brand Billabong will enter ten days of exclusive talks with a consortium led by the former boss of the brand's America's division after the group cut its bid by 45% to AUD0.60 per share.

The bid, from Paul Naude and private equity firm Sycamore Partners, values the company at AUD287m (US$300m), down on an initial AUD1.10 per share bid, which valued the company at AUD524m.

It beat out a rival offer from VF Corp and private equity firm Altamont Capital Partners.

Billabong has had a difficult 18 months. In February last year it rejected an AUD3 per share bid from private equity firm TPG Capital, saying it did not reflect the fundamental value of the company.

Subsequent offers of AUD1.45 from TPG and Bain Capital were withdrawn after due diligence.

The latest Sycamore proposal includes the option for shareholders to accept shares in a Sycamore affiliate to be incorporated to make the bid.

Founder Gordon Merchant and Collette Paull, the company's largest shareholders with a 16% stake, have said they will support the Sycamore Consortium proposal.

In February, Billabong posted an AUD536.6m (US$554.3m) first-half loss, as sales fell 8.1% to AUD702m, driven by 17.3% drop in Europe.

Last year the company named former Target managing director Launa Inman as CEO, who then outlined a four-year transformation strategy. The plans include simplifying the business, leveraging Billabong and other key brands, realising the strategic potential of retail, expanding e-commerce and integrating the supply chain.