Billabong shares have been placed in a trading halt amid reports it received a $A776 million takeover bid from US private equity giant TPG.

Billabong issued a statement on Thursday announcing the trading halt after a newspaper said the troubled surfwear retailer had received an offer of at least $A3 a share.

The offer represents a 70 per cent premium to the stock’s last trading price of $A1.79.

Billabong said it had put its shares in a trading halt pending a structural review.

“Billabong International has requested a trading halt pending an announcement on the strategic capital structure review,” the company said.

Australian Stock Report head of research Chris Conway said interest in Billabong could cause the stock to rebound once the shares resume trading.

“If the rumours bear fruit, then we could actually see Billabong significantly higher,” Mr Conway said.

Indicators were showing the stock could rise by about seven cents.

Earlier on Thursday, The Australian Financial Review reported Billabong received the takeover offer from TPG on Tuesday.

It was believed TPG had secured backing to help finance its offer from Australian and international banks, the paper said.

TPG part owns private hospital group Healthscope and floated department store Myer in 2009.

Its takeover offer comes after manufacturer Pacific Brands, services group Spotless and paper merchant PaperlinX attracted bids from private equity groups.

In December, Billabong International shares plunged by more than 30 per cent after it forecast a decline in earnings for the first half of the current financial year.

The retailer expected to report first-half earnings before interest, tax, depreciation and amortisation (EBITDA) of between $70 million and $75 million.

It also decided to undertake a further operational review of the business to reduce its overheads.

Billabong is due to report its first-half results on Friday.