Australia's takeover regulator has declined a request from Oaktree Capital Management and Centerbridge Partners to delay a $359 million refinancing deal surfwear for company Billabong International on anti-trust concerns.

The two US hedge funds, whose own refinancing proposals were rebuffed by Billabong, had asked the takeovers panel to intervene in the deal with Altamont Capital Partners because some elements, including a hefty break fee, were "anti-competitive and coercive".

The panel declined to stop the sale but would still investigate the deal, a spokesman said.

Oaktree and Centrebridge had asked the panel to delay the drawdown of a $294 million bridge facility and the sale of Billabong’s DaKine brand to Altamont, both expected to occur early next week, pending the results of an investigation. – (Reuters)