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DUBAI - Private equity firm Istithmar raised its offer to buy Barneys New York from Jones Apparel Group to US$900 million ($1.18 billion) yesterday, matching a bid by Japan's Fast Retailing.
Istithmar, owned by the government of Dubai, had agreed to buy the luxury retailer for US$825 million before Fast Retailing entered the fray with a US$900 million offer.
Last Wednesday, Jones gave Istithmar three days to increase its bid.
Istithmar could consider launching Barneys New York in markets such as China and the Middle East if it completes the deal, Istithmar chief executive David Jackson said last month.
Jones bought Barneys in 2004 for US$400 million, moving a company that supplied clothes and shoes to mall department stores and discounters into the luxury retailing market.
Jones, which owns clothing, shoes and accessories brands such as Nine West, Gloria Vanderbilt and Jones New York, put itself up for sale last year, but failed to find a buyer.
It agreed to sell Barneys in June after several months of negotiations.
Under a June agreement with Istithmar, Jones Apparel's management can explore bids for the whole company until Saturday.
If Fast Retailing wins the bidding battle, Barney's would be its biggest purchase.
The Tokyo-headquartered company has a chain of more than 700 stores in Japan, and now plans to expand abroad, spending up to 400 billion ($4.48 billion) on acquisitions.
Istithmar's investments on behalf of the Dubai Government include a stake in Standard Chartered and buying the luxury liner Queen Elizabeth 2.
- Reuters
