Jones Apparel Group Inc. said on Wednesday a revised $900 million bid for its Barneys New York retail chain from Japan's Fast Retailing Co. Ltd. is superior to the $825 million bid from a Dubai-owned private equity firm it accepted in June.

Jones said it plans to accept Fast Retailing's bid unless the Dubai-owned firm, Istithmar, sweetens its bid, at least matching the Fast Retailing offer.

Under its agreement with Istithmar, Jones will have to pay a $22.7 million breakup fee if it accepts the bid from Fast Retailing, which owns the Uniqlo chain.

(Reporting by Martinne Geller)

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