Shares in troubled surf retailer Billabong have dived 22 per cent due to speculation a second private equity firm was considering withdrawing its takeover bid.

Private equity firm TPG was considering formally withdrawing its $1.45 a share bid for the retailer, the Australian Financial Review reported today.

Billabong's other private equity suitor Bain Capital pulled its matching offer late last month during the due diligence phase.

Shares in the surfwear company tumbled 22 per cent to a three month low of $1.015.

The company has since requested a trading halt for its shares, which was granted after the share price had recovered somewhat, to $1.075.