A group bidding for Burlington was dealt setbacks.

A federal judge in New York denied the request by a partnership headed by New York financier Asher B. Edelman and Montreal-based Dominion Textile Inc. to block a $78-a-share buyout of Burlington Industries by a group led by Morgan Stanley & Co. And a federal appeals panel in Virginia upheld an injunction barring the partnership from pursuing its own $77-a-share hostile takeover bid for the textile giant. Also, a New York federal appeals court ruled the partnership’s challenge to the constitutionality of two North Carolina anti-takeover laws must be decided in North Carolina federal court.