Dubai firm raises bid for Barneys

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Dubai-based private equity firm Istithmar has upped its bid for Barneys to $942.3m (£462.6m), as part of the battle for the upmarket clothes chain.

The offer is less than the $950m bid from Japan's Fast Retailing, but tops the $825m offer Barney's had originally accepted in June.

Jones, Barneys' parent firm, has agreed in theory to Istithmar's offer and pulling out would cost it $34.7m.

Fast Retailing has until 1100 GMT on Thursday to refresh its own offer.

The two contenders have been battling it out since June, when Istithmar's original offer was given the go-ahead.

Fast Retailing has been successful in Japan through its store chain Uniqlo, specialising on basic, own-brand items of clothing such as T-shirts and jeans.

But future growth will require more overseas expansion, analysts say.

Istithmar - which is part of conglomerate Dubai World - has already made a number of investments in the US, including the Loehmann's chain.