NEW YORK — Two iconic American clothing labels — preppy Tommy Hilfiger and Calvin Klein, known for its modern aesthetic — are coming together under one roof.

Calvin Klein parent Phillips-Van Heusen said it plans to purchase Tommy Hilfiger for about $3 billion in cash and stock.

The deal adds a prominent brand to Phillips-Van Heusen's stable, which also includes Izod and Arrow. It's expected to help Phillips-Van Heusen introduce some of its brands overseas, where 65 percent of Hilfiger's business is generated.

Apparel analysts expect the Hilfiger brand to expand further beyond its stronghold in Europe into Asia and South America, while bolstering its U.S. business.

CHINA CUTS BACK ON U.S. DEBT BUT IS STILL TOP HOLDER

WASHINGTON — China retained its spot as the biggest foreign holder of U.S. Treasury debt in January even as it trimmed its holdings for a third straight month.

The string of declines underscored worries that the U.S. government could face much higher interest rates to finance soaring budget deficits. The Treasury Department said yesterday that China's holdings dipped by $5.8 billion to $889 billion in January compared with December.

Japan, the second-largest foreign holder of U.S. government debt, also trimmed its holdings but by a much smaller $300 million, to $765.4 billion.

INDUSTRIAL PRODUCTION UP FOR EIGHTH STRAIGHT MONTH

WASHINGTON — Industrial production edged up 0.1 percent in February, beating expectations and marking the eighth straight monthly increase.

The manufacturing sector — for months a rare bright spot in the economy — produced less due to winter storms but is expected to rebound in March.

The Federal Reserve said manufacturing, the index's largest component, fell 0.2 percent. Mining and utilities rose 2.0 percent and 0.5 percent, respectively.

— Associated Press