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Delta Galil's Bid for Jones Group Division at Impasse?

The deal that was supposed to be made or broken in a month is now approaching the end of its third month, with no handshake in sight.

JONES JEANS IMPASSE: The deal that was supposed to be made or broken in a month is now approaching the end of its third month, with no handshake in sight. Delta Galil Industries Ltd.’s bid to buy The Jones Group Inc.’s denim division for between $350 million and $400 million originally carried a deadline of Nov. 11, a month after the talks were disclosed. Without a done deal, and with a dispute over the price believed to be bogging down proceedings after the unit’s disappointing third quarter, the parties and the banks kept talking, with Delta Galil chief executive officer Isaac Dabah revising his timetable for consummation until the end of 2011.

 

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Dabah, who sold Gloria Vanderbilt Apparel Corp. to Jones in 2002 and stayed on to run its fledgling jeans unit, remains determined to expand on Delta Galil’s base in innerwear and underwear, sources said, but might currently lack either negotiating flexibility from Jones or a willingness from the banks to back the deal. Delta Galil didn’t respond to a request for comment Tuesday, and Jones declined comment.