Australian surfwear company Billabong International said on Friday a takeover offer from TPG Capital worth A$694 million ($712 million) was too low, but it would still open its books to the private equity firm.

Photo: Billabong

Billabong said there was no guarantee that a transaction would be agreed after TPG had seen the retailer's books.

"In fact, the board of Billabong does not believe that the proposal reflects the fundamental value of Billabong in the context of a change-of-control transaction," the company said.

TPG made a fresh takeover approach to Billabong on Tuesday, just five months after a better offer was knocked back.

Since that first approach, Billabong has sold half of its of watch brand Nixon, issued a profit warning, hired a new chief executive and raised A$225 million in equity to reduce debt.