KKR Makes Bid for Australia’s Pacific Brands

KKR, the buy-out company, has made an unsolicited bid for the struggling Australian clothing company, Pacific Brands. Pacific Brands' board confirmed it is holding preliminary discussions
with KKR about the approach but said there was “no certainty that these
discussions will lead to any agreement being reached between the
parties.”

Pacific Brands' sales fell 7.3 per cent to A$1.6bn for the last fiscal year. Margins were also pressed by high cotton prices, which the company expects will continue this year. Its shares are down 34.7 per cent since the beginning of last year.

Pacific Brands, which holds the rights to the Everlast, Clarks and Bonds
brands, rose 14 percent after saying it had been approached by KKR. No
price was disclosed. The Melbourne- based company's market value was
A$584 million ($602 million) at the close of trade in Sydney.