Billabong shares were lower on Wednesday, just a day after the stock rallied 16 per cent as traders braced for a potential bidding war for the embattled surfwear company.
Billabong's share price fell two per cent in early trade on Wednesday as investors repositioned their holdings.
On Monday night, the company revealed it had received yet another takeover offer, this time a joint bid from VF Corporation - owner of The North Face and Timberland outdoor clothing brands - and US-based investment firm Altamont Capital Partners.
The offer matches the $1.10-a-share offer the surfwear company received in December from the Sycamore consortium led by US-based Billabong executive Paul Naude.
But the shares are still trading at a 13 per cent discount to the takeover offer as investors continue to question whether a deal will go ahead.
Billabong is one of the the most shorted stocks on the market, with short sellers betting that the stock will go down in price.
At 1320 AEDT shares in the company were one cent, or one per cent, lower at 97 cents while the local market was 0.3 per cent higher.
IG Markets strategist Evan Lucas said analysts were still bickering over which offer was better for Billabong.
"The main jump yesterday was short sellers unwinding," Mr Lucas said.
He said the 13 per cent discount indicated that many investors believed the deal would not go ahead.
"There's still an overhang over which deal is better," he said.
One analyst said there had been no developments overnight.
"There's nothing new, si there's not a big share price move today," he said.
"You'll see these things move around a little bit as various investors position themselves for what they think might play out."
Some analysts believe investors are taking the latest two takeover offers more seriously than the string of other failed bids for Billabong in the past year.
Private equity firm TPG made two unsuccessful offers in February 2012 of $776 million and $850 million.
TPG returned with a third offer of $694.5 million, or $1.45-a-share, in July which it withdrew three months later during the due diligence phase.
Bain Capital matched the $694.5 million bid in September but withdrew the offer only weeks later during due diligence.
Meanwhile, Altamont Capital has reportedly lined up former Oakley boss and Bain and Company executive Scott Olivet to help build the business if its bid succeeds.