* Proposal price cut to over A$0.60/shr from A$1.10
* Billabong in exclusive talks with Sycamore Consortium
* Shares suspended at A$0.73; set to fall when trade resumes
SYDNEY, April 9 (Reuters) - Australian surfwear company Billabong International Ltd will enter 10 days of exclusive talks with a consortium led by its former U.S. boss after the group cut its indicative takeover proposal by 45 percent to $300 million.
Paul Naude and private equity firm Sycamore Partners are now offering A$0.60 per share, Billabong said in statement on Tuesday, confirming reports the bid would be scaled back.
Billabong and its shareholders have endured a horrible year since rejecting a A$850 million ($883 million) bid from rival private equity firm TPG Capital, in February 2012.
Plagued with high debt from an ill-timed expansion and struggling as its brands fell out of favour, the company has sold assets, closed stores, replaced its chief executive and embarked on a new strategy as a series of takeover proposals came and went.
Naude and Sycamore Partners beat out a rival bid from a consortium comprised of private equity firm Altamont Capital Partners and U.S. clothing group VF Corp. Both bidders had initially proposed A$1.10 a share before conducting due diligence.
"I think it probably does progress. I don't think they have too many options left," said Jason Beddow, managing director of Argo Investments, which manages A$3.5 billion and has a small stake in Billabong. "It's such a small company now, such a small investment for anyone. I think it lost relevance as well."
The VF Corp and Naude offers were the fourth and fifth takeover approaches for the Australian company since February 2012, the first pitched at A$850 million and rejected as too low.
Billabong shares have been halted from trading since last week, having last traded at A$0.73. The stock, which has lost around two-thirds of its value in the past year, sank to an all-time low of A$0.63 last month.
The latest Sycamore proposal includes the option for shareholders to accept shares in a Sycamore affiliate to be incorporated to make the bid. Founder and top shareholder Gordon Merchant plans to accept the scrip bid in the absence of a higher offer.