Australian surfwear brand Billabong International is expected to fend off more takeover bids after its share price dived to its lowest level on record this week.

Shares prices fell 36% following a heavily discounted rights issue that failed to allay fears about the future of the company.

This was more than 14 times lower than Billabong's all-time share peak of $13.64 on June 30, 2007.

Billabong now expects underlying earnings of between $130 million and $135 million for the year to June 30. This was well below its forecast of earnings slightly above $157 million when it announced plans for major restructuring in February.

Some experts believe Billabong will need to close more than the 140 of its 600 stores to recoup losses.

Share this story: