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Billabong said Thursday in Australia that the two bidders vying to buy the struggling company are still involved in the process.

 

The company called a trading halt around lunch time in Australia Thursday after its stock price dropped as much as 22 per cent to 63 cents in morning trading on higher than normal volume.

 

By the time the trading halt went into effect, Billabong’s stock price closed down 14% for the day, to 69 cents.

 

Later in the day Thursday, Billabong released a statement confirming the two parties are still involved in the bidding.

 

The company said it did not definitely know the reason for the increased trading activity, but cited a story in the Australian Financial Review and a report from a stock analyst at Credit Suisse.

 

The story, according to media reports, said that if EBITDA dropped from the current guidance of $74 million for the 2013 financial year to $50 million by 2015, due to a reduction in wholesale earnings resulting from brand rationalization, then Billabong’s equity value would be zero. The story cited the Credit Suisse report as the source of that information.

 

Another story in the Wall Street Journal in Australia also cited the Credit Suisse report, which confirmed a A$1.10 a share price target on the stock because of “the likelihood of a takeover proceeding from one or more of two private equity proposals.”

 

The bidding process is reportedly in its final stages, with the final bids due March 28.

 

Paul Naude and private equity firm Sycamore Partners are trying to buy the whole company, as are VF Corp. and Altamont Capital Partners. VF is only interested in the Billabong brand, however, and Altamont would acquire the other pieces.