P.M. BRIEFING : Farley to Try Debt-Equity Swap

CHICAGO — Industrialist William Farley plans to surrender majority ownership of West Point-Pepperell Inc. by proposing a debt-equity swap to reduce the costs of his troubled takeover efforts, a newspaper reported today.

Farley, who holds 95% of the textile giant’s stock, is offering certain debt holders a combined stake of 65% in a restructured version of Pepperell, the Wall Street Journal reported, citing sources it did not identify.

The transfer would help reduce and delay certain interest payments and might be the only way Farley can avoid bankruptcy, the Journal’s sources said.