NEW YORK (AP) - Japan's Fast Retailing Co. has increased its offer to acquire Barneys New York to $950 million after Dubai-based investment group Istithmar matched Fast's original $900 million offer, Barneys owner Jones Apparel Group Inc. said Sunday
Fast Retailing, the operator of Japan's popular Uniqlo casual clothing chain, announced its original offer for the luxury retailer July 5, topping an earlier $825 million bid from Istithmar that Jones Apparel had agreed to in June.
A statement from Jones Apparel said Istithmar now has two business days to make an offer that Jones' board determines is 'at least as favorable to Jones as the amended Fast Retailing offer.'
If Jones Apparel ends up accepting the amended Fast Retailing offer, Jones would have to pay Istithmar a breakup fee of $22.7 million.
Fast Retailing first told Jones it was interested in acquiring Barneys last fall. Acquiring Barneys would add to its geographic and market diversification, Fast Retailing said.
Fast has expanded its Uniqlo operation aggressively overseas in such markets as Britain and continental Asia, and it has ambitions to challenge U.S.-based Gap Inc. It opened its global flagship store in New York City's SoHo neighborhood last September.
Jones acquired Barneys three years ago in a hot luxury market with aims of diversifying its portfolio. But Jones soon came to realize that expanding Barneys would require more capital investment than it had anticipated.
Jones said last month that it planned to use the proceeds of the Barneys sale to invest in other brands and to boost shareholder value.
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