TALKING POINT/BURLINGTON INDUSTRIES <BUR>
The largest U.S. textile maker focused
on its own business as its competitors found merger partners,
but now Burlington Industries Inc may have restructured itself
into an attractive takeover candidate, analysts said.
    The takeover spotlight fell today on Burlington, which rose
4-7/8 to 52-7/8 on speculation that investor Asher Edelman and
Dominion Textiles Inc of Canada bought an almost five pct
stake.
    A published report said Edelman and Dominion jointly
acquired a stake in Burlington and were weighing a takeover
offer. Edelman would not comment, and a spokesman for
Montreal-based Dominion called the report just "rumors."
    Burlington said it did not know if the report was true.
    Wall Street professionals said they were not convinced of
the story or that Edelman and Dominion would be the victors if
Burlington actually came into play.
    Arbitragers said past comments from Dominion, however,
added credence to the speculation. Dominion has said that it
was looking for a takeover in the U.S.
    Last year, Dominion unsuccessfully bid for Avondale Mills
and has maintained a 120 mln dlr line of credit to be used for
a U.S. acquisition.
    A Dominion spokesman said Canada's largest textile producer
has been negotiating with "many" U.S. textile companies, but
would not say whether Burlington was among them.
    "There have been acquisitions in this area. It's not
unusual that someone could be looking at Burlington after the
housecleaning they've done," said Eileen Gormley of Thomson
McKinnon.
    Burlington sold its domestic operations, which made sheets
and other linens, to J.P. Stevens and Co Inc for 110 mln dlrs
last year. It also has reorganized management, and focused its
operations on businesses that would be less affected by foreign
competition, Gormley said.
    "They've pulled back so as not to be a commodity marketer,"
said Gormley. She said in moving more heavily into industrial
fabrics, Burlington bought C.H. Masland, which supplies carpets
and other fabric to the auto industry.
    "In the past, they just spent and never realized the return
on the outlays they did make," she said.
    "You look at their record over the year, and I think
they're poised to be more profitable than they had been in the
past," Gormley said.
     She estimated 1987 earnings of 2.50 dlrs per share, up
from 2.01 dlrs per share.
    Some analysts today recommended clients not buy Burlington
at its current levels.
    Edward Johnson of Johnson Redbook said he recommends
selling. He said he believes the stock is worth only about 50
dlrs on a takeover basis and about 46 dlrs on an earnings
basis.
    Some arbitragers, however, said takeover values have been
placed on the company of 60 to 65 dlrs per share.
    "After Asher's (Edelman) recent history, a lot of people
don't find him very credible anymore," said one arbitrager.
    Another, however, said Edelman succeeds in forcing
managements to take steps to enhance shareholder values even if
he doesn't win the target company.
    Edelman was unsuccessful last year in offers for Lucky
Stores Inc and Fruehauf Corp. He did succeed in buying
Ponderosa Inc.
    The stocks of other textile makers rose along with
Burlington.
    J.P. Stevens <STN> climbed 5/8 to 44-7/8, and Fieldcrest
Cannon Inc <FLD>, the result of a merger of Fieldcrest and
Cannon, rose 1-1/8 to 39-3/4. West Point-Pepperell Inc <WPM>
rose 1-7/8 to 67-1/8.
 Reuter
