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Sara Lee to Buy Champion Firm for $320.9 Million : Champion Clothing Firm OKs Buyout by Sara Lee Subsidiary

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From Associated Press

Champion Products Inc., a maker of athletic and leisure clothing, has agreed to be sold to Sara Lee Corp. of Chicago in a deal valued at $320.9 million, Champion officials announced today.

Champion, which saw profits rise 114% last year to $14.8 million, has been trying to fight off a hostile takeover attempt by a New York investment group.

The agreement between Champion and Sara Lee, a $10-billion food and consumer products company, calls for a wholly owned subsidiary of Sara Lee to begin offering $77 a share for Champion stock this week.

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The company said there are 4,167,700 outstanding shares of fully diluted stock, including various convertible stock options.

Champion stock on Friday closed at 63 5/8, a record high, on the American Stock Exchange.

Phonicam Corp., the New York firm that has been trying to buy Champion since 1986, has been accumulating the company’s stock and offered to buy Champion in December at $55 a share. It upped the offer in January to $61.

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