Shareholders Sue Farley Over Pepperell Deal
CHICAGO (AP) _ A group of West Point-Pepperell Inc. stockholders has filed a federal lawsuit charging that Farley Inc. misrepresented its takeover of their Georgia textile company.
The lawsuit, filed Thursday on behalf of a group said to own 46,800 Pepperell common shares, followed reports that Chicago-based Farley Inc. was having trouble securing financing for the buyout.
Farley agreed last year to acquire sheet-and-towel maker Pepperell for $3 billion.
In a brief statement, Farley denied than any of its ″tender offer materials or other disclosures were not complete or accurate disclosures at the time they were made.″
Farley said the suit, which names its founder, industrialist William Farley and unidentified Pepperell officials as defendants, is ″without merit″ and it plans to ″vigorously contest the plantiffs in court.″
Farley’s acquisition of Pepperell, based in West Point, Ga., was said to create the world’s largest textile and apparel group, with more than $4 billion in sales and about 70,000 employees.
Farley’s best-known holding is Fruit of the Loom underwear.