Istithmar faces heat over Barney''s bid from Fast Retailing''s parent Uniqlo
06 Aug 2007
Istithmar, the investment arm of the Dubai government, has raised its bid for US department store chain Barney''s New York from $825 million to $900 million to match a rival bid tabled last week by Uniqlo, owner of Japanese firm Fast Retailing.
Jones Apparel that owns Barney''s had accepted the earlier $825-million takeover offer from Istithmar, adding that it would pay a break up fee of $22.7 million if it later pulled out.
However, last Wednesday Jones told Istithmar that it would go along with the Uniqlo offer unless the Dubai firm could match it. Istithmar said it had revised its offer to acquire Barneys New York
If it wins the bidding battle, Istithmar says it would consider launching the Barney''s format in markets such as the Middle East and China.
Barney''s 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.
However,
observers say Istithmar could face a tough battle with Fast Retailing as its Japanesse
parent seeks to overtake industry leaders such as Zara and Hennes & Mauritz
to become world leader in the casual clothing market.