And here's the good news! $11 per share!
Wednesday September 17 12:32 PM EDT
Warnaco to acquire Designer Holdings
NEW YORK, Sept 17 (Reuter) - Warnaco Group Inc said Wednesday that it has agreed to buy Designer Holdings Ltd, paying Designer shareholders $11 of
Warnaco stock for each Designer share.
The transaction is structured to be tax-free to the Designer Holdings shareholders and is anticipated to be completed by year-end.
The company said directors of both companies have approved the deal, which is still subject to completion of a definitive agreement, shareholder and regulatory
approval, and other customary conditions.
In a statement, Linda Wachner, Warnaco's chief executive, said, ``Designer Holdings has made the Calvin Klein Jeans and Khaki labels incredibly powerful
brands. Adding that business to our own strong product lines, including Calvin Klein underwear and sleepwear for men and women and accessories for men,
should create exceptional value for the Warnaco shareholders.''
Designer Holdings has a 40-year extendable license to develop, source and market designer sportswear collections under the Calvin Klein Jeans, CK/Calvin Klein
Jeans and CK/Calvin Klein/Khakis labels.
Before trading in both companies was halted today, Warnaco traded at 34, up 1/16, Designer Holdings at 9-3/8, up 1/8. Warnaco also said that New Rio LLC,
which owns 51.3 percent of Designer Holdings shares, will support the deal.
Warnaco is a manufacturer of intimate apparel, menswear and accessories sold under such brand names as Warner's, Olga, Valentino Intimo, Marilyn Monroe,
Fruit of the Loom bras, Van Raalte, Lejaby, Bodyslimmers, Chaps by Ralph Lauren and Calvin Klein men's and women's underwear and men's accessories.
More news for referenced ticker symbols: DSH, WAC, and related categories and industries: textiles, stock capsules. |
