Curtains for Calvin Klein?

It looks at first glance to be the most unlikely of takeovers. On the one hand is fashion house Calvin Klein - famed for its ultra-cool image and racy advertising campaigns for underwear and fragrances.

And in the other corner is Phillips-Van Heusen, which has made its name as the maker of smart-but-dull shirts worn by businessmen the world over. The sort of firm you could, literally, put your shirt on.

Quite what will happen now Van Heusen is poised to buy Calvin Klein for £250million is anybody's guess.

The deal has been masterminded by Van Heusen chief executive Bruce Klatsky, who wants to bring in cool brands to the company's stable and then expand them. The joint company will be called Calvin Klein Co, the Wall Street Journal reported yesterday.

The deal does not include Calvin Klein jeans.

Experts have given a mixed reaction to the buyout of one of the last big independent fashion labels, which was put up for sale three years ago by designer and partner Barry Schwartz.

To make a major impact on the European clothing market, the company would need a big cash injection, something analysts believe may be beyond Van Heusen.

Klein and Schwartz set up the company with £6,000 in 1968 and it enjoyed a meteoric rise to international acclaim within five years.