The reports came after Billabong Wednesday requested a trading halt in its shares pending the release of an announcement.

The Australian Financial Review said the Fort Worth, Texas investor had offered least A$3 per share, which is 68% above the A$1.79 price at which the stock last traded. The shares have lost more than three-quarters of their value in the past year.

TPG made its Australian debut in May 2006 with the A$1.4 billion consortium purchase of department-store operator Myer Pty Ltd., which it exited in 2009 via an IPO, triggering a tax dispute with Australian authorities. Other local portfolio companies include healthcare provider Healthscope Ltd. TPG's Australian office is in Melbourne.

Its interest in Billabong confirms expectations that private equity will make Australian retailers and consumer goods companies a focal point this year after a raft of profit warnings stifled valuations. New York rival Kohlberg Kravis Roberts & Co. is currently in discussions with clothing maker Pacific Brands Ltd. Other retailers seen as potential bid targets include Myer and department-store rival David Jones Ltd., outdoor clothing company Katmandhu Holdings Ltd. and electronics chain JB Hi-Fi Ltd. Shares in both Katmandhu and JB rose 1.4% on Thursday.

Billabong is led by CEO Derek O'Neill and is headquartered in Burleigh Heads, in the northeastern state of Queensland. It had revenue in fiscal 2011 of A$1.69 billion, of which A$843.7 million came from the Americas. Ebitda was A$191.1 million, down more than 23% on the year. Factors contributing to the steep earnings decline included the Queensland floods and New Zealand earthquake, tighter margins in Europe, a weak consumer environment, a strong Australian dollar, and costs related to acquisitions it made to build its retail business. These included Canadian boardsports retailer West 49 Inc., and the Surf Dive 'n' Ski, Jetty

Surf and Rush Surf chains in Australia.

Net debt at its fiscal year-end was A$468.3 million.

Billabong said its shares would remain suspended until either the release of its announcement or until Monday.

TPG spokeswoman Sue Cato declined to comment.

Billabong's shareholders are led by founder and non-executive director Gordon Stanley Merchant, with 14.8%, and Perennial Investment Partners Ltd., with 10.2%, according to its website.

Billbong's law firms are Allens Arthur Robinson, Clayton Utz, Minter Ellison and Freehills.