• July 6, 2007

Fast Retailing Co. Ltd. has submitted a proposal to Jones Apparel Group, Inc. to acquire Barneys New York, Inc. for $900 million in cash.

The proposal ups by 9% a recently announced agreement by Jones to sell Barneys to Istithmar, a Dubai-based private equity and alternative investment firm, for $825 million.

Japan-based Fast Retailing says it previously communicated its interest in acquiring Barneys to Jones last fall and is submitting its proposal under the provisions of the Jones agreement with Istithmar, which allows Jones to consider superior proposals for Barneys if received prior to July 22.

Fast Retailing says in a release that it has the "highest regard for the Barneys brand and management team" and that it believes Barneys has attractive long-term growth potential through its leadership position in the luxury segment in the U.S., as well as in the affordable luxury segment through Barneys Co-op.

Founded in 1963, Fast Retailing operates 1,800 specialty stores in 12 countries. The company has experience in acquiring companies in the retail sector, including an equity stake in Link Theory Holdings Co. Ltd., the marketer of the Theory and Helmut Lang apparel brands in 2004.--Tanya Irwin