Beleaguered Australian retailer Billabong International Ltd. has opened its financial books to a new takeover suitor group led by former Billabong director and president of its American business, Paul Naude, and his backers, Sycamore Partners Management and Bank of America Merrill Lynch. The consortium offered a takeover approach of $1.10 cash per Billabong share or roughly $526.8 million.

The due diligence process which could take as long as six weeks, Australia-based Billabong said in a statement on Monday. The go ahead was given after its board said that it had reviewed in detail the "confidential, indicative, non-binding and conditional" proposal from Mr Naude and his backers.

"The board of Billabong reiterates that there is no guarantee that, following a period of due diligence by the consortium, an acceptable binding proposal will be forthcoming," Billabong said in its statement.

"(Although) There remain significant questions regarding the future earnings potential of Billabong, we believe Sycamore Partners is well positioned to turn around (the company)," analyst Shaun Cousins from JPMorgan Chase & Co. said in an earlier Dec. 20 note to clients.

The takeover approach by Mr Naude's group is the fifth that Billabong had faced for the year 2012 alone. It is likewise the lowest. Earlier takeover offers reached as high as $850 million early in the year. Earlier suitors included TPG International LLC and Bain Capital LLC.

According to data from JPMorgan, the troubled surfwear company had missed its earnings target more than 10 times already since 2007.

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