Troubled retailing giant, Billabong has assured its investors that it is still holding discussions over takeover with two potential suitors.

The shares of the company recovered from some of its losses after the retailer indicated that the takeover talks are going on with potential partners.  The company had requested a trading halt for its shares on Thursday after it faced a sudden sell off.  The shares of the company had fallen 20 per cent on Thursday due to significant number of shares being sold at the stock market.

It is believed that the retailer is holding talks with two interested parties that have each made an offer of $1.10 per share for the company.  The shares had fallen significantly after some market analysts had said that the parties have pulled out of takeover talks.  Billabong said that it is still holding talks with the Sycamore and Altamont/VF consortiums for a possible takeover.  Experts said that the share prices were affected by the expectation in the market about the takeover talks.

The shares of Billabong increased 7.91 per cent and were trading at 75 cents.