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Time running out for Istithmar to match $950 million rival bid

On Sunday its arch-rival, the Japanese-owned Fast Retailing Co Ltd, increased its offer to $950 million, outbidding the $900 million offer the Dubai-owned private equity and alternative investment house had tabled on Friday to match the price Fast Retailing had previously offered.

Yesterday executives at Istithmar remained tight-lipped on the deal.

According to a statement posted on the web site of Jones Apparel on August 5, the company "received an amended offer from affiliates of Istithmar to acquire Jones' wholly owned subsidiary Barney's New York for $900 million in cash and an amended offer from Fast Retailing to acquire Barneys for $950 million in cash."

The statement then expresses Jones' intention "to accept the amended Fast Retailing offer."

Jones Apparel also says it is entitled to terminate the Istithmar agreement unless Istithmar makes a counter offer that Jones' board of directors determines "to be at least as favourable to Jones as the amended Fast Retailing offer."

If Jones Apparel terminates the Istithmar agreement to accept the Fast Offer, Jones is required to pay an affiliate of Istithmar a termination fee of $22.7 million.