TEXTILES: Offer for Woolen

The American Woolen Co. battle, which seemed settled a few weeks ago (TIME, March 1), broke out again last week. For the second time in less than two months, Textron Inc. offered to buy American Woolen's common stock and reorganize the company. This time it upped its cash offer from $2 to $5 a share (978,342 shares outstanding), offered in addition one-fifth share of Textron $4 preferred stock and one-half share of Textron common stock for each share of American Woolen common. The offer was equal to $24.49 a share (v. American Woolen's current market value of $19). A stockholders' committee, headed by Boston Financier A. M. Sonnabend, which says it represents 13% of American Woolen's common stock, indicated that it liked the offer. But control of the company is still in the hands of a group led by New Haven railroad President Frederick C. Dumaine, and he is not likely to accept. Dumaine knows that if Textron takes over American Woolen, the company will probably pack up and move south. Dumaine is reportedly trying to work out a deal to merge with Massachusetts' Bachmann-Uxbridge Worsted Corp. and try to keep American Woolen in New England.