Ross' Bid For Burlington Is Best

Greensboro, NC, July 28--Burlington Industries Inc. said investment firm WL Ross & Co.'s $608 million offer for the company is the best and highest bid. In a press release Friday, Burlington said other bidders will have to top WL Ross' offer at an auction set for Monday. The auction procedures require that competing bids exceed Ross' offer by increments of $3 million and allow for break up fees of 1% of the proposed purchase price. WL Ross' bid is contingent on the sale of Burlington's Lee's Carpet unit to Mohawk Industries Inc., which was announced last week. If New York-based WL Ross' offer succeeds, the companies expect the deal to close in October. As part of the $608 million offer, Burlington estimates that about 40% of its unsecured claims and secured creditors will be repaid full. When Burlington filed for bankruptcy in November 2001, the textile company listed $1.2 billion in assets and $1.1 billion in liabilities. The company began auction procedures after a planned $579 million acquisition by Berkshire Hathaway Inc. fell through in February.

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