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Bid battle for Barneys heats up | |
(about 2 hours later) | |
Dubai investment firm Istithmar has upped its bid for US department store chain Barneys New York. | |
The $900m (£443m) offer matches a rival bid tabled last week by Japanese firm Fast Retailing - owner of Uniqlo. | The $900m (£443m) offer matches a rival bid tabled last week by Japanese firm Fast Retailing - owner of Uniqlo. |
Barneys owner Jones Apparel accepted an $825m takeover offer from Istithmar, but also said it would pay a $22.7m break up fee if it later pulled out. | |
But, on Wednesday Jones told Istithmar it would accept the Japanese offer unless the Dubai firm could match it. | But, on Wednesday Jones told Istithmar it would accept the Japanese offer unless the Dubai firm could match it. |
Following the news the Dubai firm said it had "revised its offer to acquire Barneys New York ... at a purchase price of $900m and under competitive terms in the share purchase agreement. | Following the news the Dubai firm said it had "revised its offer to acquire Barneys New York ... at a purchase price of $900m and under competitive terms in the share purchase agreement. |
"If this offer is not accepted Istithmar is entitled to our break-up fee of 22.7 million dollars.". | "If this offer is not accepted Istithmar is entitled to our break-up fee of 22.7 million dollars.". |
If it wins the bidding battle, state-backed Istithmar has said it would consider launching the Barneys format in markets such as the Middle East and China. | |
Barneys currently operates flagship stores in New York, Chicago, Boston Dallas and Beverley Hills as well as several regional "warehouse" shops and three outlets in Tokyo that operate as franchisees. | |
But the Dubai group could face a tough fight with Fast Retailing for the US stores group. | But the Dubai group could face a tough fight with Fast Retailing for the US stores group. |
The Japanese firm is looking to overtake industry leaders such as Zara and Hennes & Mauritz to become world leader in the casual clothing market. | The Japanese firm is looking to overtake industry leaders such as Zara and Hennes & Mauritz to become world leader in the casual clothing market. |
To that end it has set out plans to expand geographically as well as to broaden its target audience. | To that end it has set out plans to expand geographically as well as to broaden its target audience. |