Authentic Brands is still working to hammer out deal terms with Hanesbrands (NYSE:HBI) over its sale of Champion.
Although Authentic Brands is still likely to emerge as the buyer for Hanesbrands (HBI), negotiations are complex and may extend into August or even September, according to an Axios Pro report on Thursday, which cited sources familiar with the matter.
Authentic Brands doesn’t want to pay more than $1 billion for Champion, though Hanesbrands (HBI) was initially looking for $1.4 billion, according to the report. Champion has manufacturing assets that are expensive to operate and will be costly to wind down, and are likely the reason for the price reduction.
The Axios update comes after Women’s Wear Daily reported early last month that Authentic Brands won the bidding war for Champion and agreed to buy Champion for a little over $1 billion. News of the $1 billion price tag sent Hanesbrands (HBI) sinking 11% on April 2 as investors appeared disappointed about the price.