DK OKs LVMH Bid

The board of Donna Karan Intl. Inc. has approved a takeover offer of$240 million by LVMH Moet-Hennessy Louis Vuitton SA. The new offer,which is 25 percent higher than LVMH's December proposal, values DonnaKaran at $10.60 a share.

Owners of the New York-based retailer, fashion designer Donna Karan andher husband Stephan Weiss, had agreed to sell the Donna Karan trademarksto France's LVMH for as much as $450 million, making the takeoveragreement a natural next step.

The deal will allow LVHM to expand Donna Karan brands internationally,joining Louis Vuitton, Christian Dior and Celine. Karan will remainchief designer of the house.