J. P. Stevens Rejects Bidders’ Joint Proposal

J. P. Stevens & Co. said Friday that it rejected a $1.22-billion takeover offer from rival bidders whose joint buyout proposal includes splitting the textile giant’s assets among them.

A special committee of Stevens’ board informed fabric maker West Point-Pepperell Inc. and the investment firm Odyssey Partners that their joint $68.50-a-share cash proposal was unacceptable in its present form.

The directors, who met late Thursday to review the proposal, objected to conditioning the joint deal on Odyssey getting financing and completing the purchase of about $530 million in Stevens’ assets.

$1 Billion Available

Instead, directors backed Odyssey’s separate, outstanding $68.50-a-share tender offer, which is due to expire at midnight Tuesday and would assure a quick resolution to the takeover battle.

A source close to the transaction said the joint proposal would take longer to complete and could allow the principals to back out.

Analysts were puzzled over why financing would be an issue, since Odyssey already has received more than $1 billion in commitments to fund its own bid.

Pepperell has a competing $67-a-share tender offer outstanding that also expires Tuesday.