SYDNEY - Shares in Australian surfwear company Billabong fell 7 percent on Tuesday after it rejected a higher bid proposal from private equity firm TPG Capital.

The increased indicative price, of A$3.30 a share up from A$3.00 a share, still did not reflect the value of Billabong, the company said in a statement.

The bid would be worth A$841 million (S$1,136 million). Shares in Billabong last traded at A$2.85, down 6.6 percent on the day.