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Texas Pacific Group (TPG) and Gildan Activewear Inc. are likely putting together another offer for bankrupt Fruit of the Loom Inc. (FOL), according to a bankruptcy attorney close to the negotiations, who requested anonymity.
And at least one previous bidder has definitely walked away.
"We've had absolutely no contact with [FOL] at all," said a spokesman at The Blackstone Group, which, with Russell Corp. made a bid for around $800 million before FOL agreed to sell itself to Warren Buffett's Berkshire Hathaway Inc. for $835 million in cash last month.
Meanwhile, the attorney said there will "absolutely" be one more bid for FOL, and perhaps two, when there is an auction in bankruptcy court as early as the next few weeks.
The bids would likely come from previous bidders, he said. Those bidders were the combination of TPG and Gildan, Russell and Blackstone. Since Blackstone is out, that leaves $430 million market...