Business Notes Apparel

The name Levi has long been to jeans what Xerox is to copiers and Scotch to tape. After all, Levi Strauss invented denim jeans, and the San Francisco business he founded in 1853 created an industry. Even during the designer-jean < craze, no-nonsense Levi held on to its spot as the top jeans manufacturer. The company now controls about 24% of a $6 billion annual market.

Soon, however, Levi will be in a serious shoot-out for supremacy in jeans. Last week VF, the manufacturer of Lee jeans, which account for an estimated 14% of U.S. sales, announced a plan to merge with Blue Bell. Its Wrangler and Rustler brands hold some 10% of the market. The new company will thus command roughly the same market share as Levi.

Blue Bell had previously spurned takeover efforts by Allegheny Ludlum Industries, the Bass brothers of Texas, and Canada's Belzberg family. But VF's $775 million offer, it seems, was just too comfortable to leave in the fitting room.