VF Corp. dropped out of the race to acquire Billabong International Ltd. because the asking price was too much. VF thought that the price range quoted by Australia's most popular surfing brand was not realistic when taken into consideration the company's accounts. VF has partnered with Altamont Capital Partners to bid for the Billabong brand.

Under the agreement, Altamont would have owned 40% of the stakes in Billabong.

Although no financial details were disclosed, Billabong turned down last year the proposal from TPG Capital for a buyout of nearly AUD $841 million. TPG revised its offer but eventually dropped its bid after reviewing Billabong's accounts.

Billabong, with founder Gordon Merchant as the largest stakeholder, has been considering refinancing offers to pay off its debts amid the slowdown in sales.

Steven Rendle, VF vice president, said: "This deal just didn't work out. Our valuation didn't line up with what they thought was a fair price."