The bidding war for luxury clothing chain Barneys New York intensified yesterday after Dubai investment firm Istithmar won approval for a sweetened $942.3 million takeover offer.
The new offer puts the onus on Japan’s Fast Retailing to come up with a bid that makes Istithmar walk away from the bargaining table.
Jones Apparel Group, which owns Barneys, has given Fast Retailing, Asia’s largest apparel retailer, until 5 p.m. today to beat the offer.
Jones also granted Istithmar a 50 percent boost in its break-up fee to $34.7 million, meaning that Fast Retailing’s current $950 million offer would have to be sweetened to at least $977 million.
Fast Retailing said in a statement yesterday that it was evaluating whether to continue pursuing Barneys “in light of the revised offer from Istithmar, and the substantially enhanced deal protections granted to Istithmar by Jones.”
Barneys management, including CEO Howard Socol, is said to favor Istithmar because it would enable him to operate the company independently of a large corporate parent.
For Fast Retailing, a Japanese giant with $3.8 billion in annual sales, Barneys would provide diversification outside of Japan and also into higher-end luxury goods.
Fast Retailing is primarily known for its Uniqlo clothing stores, which sell basics like cashmere sweaters and khakis at affordable prices, earning it the nickname the “Gap of Japan.”
Shares of Jones rose 2.5 percent yesterday to close at $19.88.