UPDATE 2-West 49 says Zumiez ready to top Billabong's offer

* Zumiez mulls topping Billabong's C$1.30/shr offer

* West 49 shares jump over 13 percent

* Potential Zumiez offer seen as "expensive"

(Updates with analyst comment, details, share price)

By Solarina Ho

TORONTO, July 9 (Reuters) - Canada's West 49 WXX.TO said on Friday Zumiez Inc (ZUMZ.O), a U.S.-based teen sports apparel retailer, was prepared to top Billabong International Ltd (BBG.AX)'s offer for the company, sending its shares sharply higher.

Last week, Australian clothing retailer Billabong offered to buy West 49 for C$83.2 million ($80.1 million), or C$1.30 per share, in cash, aiming to expand in the North American market for surfing and skateboarding gear. [ID:nSGE65T0EB]

A Zumiez offer, subject to a satisfactory due diligence review, would have no financing conditions and could lead to a superior formal bid, West 49 said in a statement.

Zumiez could not be immediately reached for comment on whether it would make a bid for West 49 or what price is willing to offer.

Billabong's offer was a 136 percent premium at the time. Since then West 49's shares have more than doubled in value.

"Where were these guys a month ago? All of a sudden you've got a high premium over where the stock was trading and these guys look like they're ready to fight it out. So it's curious from that standpoint," said Neil Linsdell, an analyst with Versant Partners.

Zumiez and West 49 are similar multi-brand action sports retailers and both sell Billabong products.

"I'm not quite sure what their relationship is like for them to go against one of their suppliers in the bid," said Linsdell. He said the situation was interesting, but that without a firm offer, it was too early to speculate further.

West 49 shares jumped 9.4 percent to C$1.39 on the Toronto Stock Exchange, while Zumiez shares fell 2.2 percent to $17.47 in New York.

"We believe this morning's news is a net negative (Zumiez) in the near-term given the likely dilutive earnings impact and expensive price tag," Jefferies & Co. analyst Randal Konik wrote in a research note.

Konik said an offer above Billabong's "appears rich in this environment and would be a premium to where specialty retail deals have priced in the past."

West 49 said its special committee intends to determine if Zumiez's offer can become a "firm offer that is financially superior to the transaction with Billabong," in which case Billabong would have to match the proposal within five business days.

(Additional reporting by Savio D'Souza in Bangalore)

($1=$1.03 Canadian)

(Reporting by Solarina Ho)