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Non-Tech : Berkshire Hathaway & Warren Buffet
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To: 249443 who started this subject11/1/2001 9:04:36 PM
From: 249443   of 240
 
Fruit of the Loom for $835 Million

Berkshire Hathaway to Acquire

Fruit of the Loom for $835 Million
By MITCHELL PACELLE

Staff Reporter of THE WALL STREET JOURNAL

Warren Buffett's Berkshire Hathaway Inc. has confirmed a deal with creditors of Fruit of the Loom Inc. to buy the underwear and apparel maker out of Chapter 11 bankruptcy for $835 million in cash, according to people familiar with the matter.

The price is subject to working capital and other adjustments at the time of closing, a person familiar with the matter said.

The Berkshire Hathaway bid will now be submitted to bankruptcy court, where Mr. Buffett will become the stalking horse for the other bidders who have been circling the company.

It remains to be seen whether any of the runners-up in a previous round of bidding will now attempt to top Mr. Buffett's bid, or whether other bidders will materialize.

Fruit of the Loom, a 130-year-old Chicago company known for its namesake underwear, filed for Chapter 11 bankruptcy protection in December 1999, hobbled by a heavy debt load and manufacturing and inventory problems. The company owes about $1.2 billion to secured lenders and bondholders, and about $400 million to unsecured bondholders.

Berkshire Hathaway, Omaha, Neb., has been negotiating for weeks to buy the company, which at the time of the bankruptcy filing, claimed about one-third of the U.S. market for men's and boys' underwear.

Fruit of the Loom declined to comment. Mr. Buffett couldn't be reached for comment.

Write to Mitchell Pacelle at mitchell.pacelle@wsj.com4

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