Jones Apparel Group said it has agreed to sell its Barneys New York chain to Istithmar for a sweetened price of $942.3 million after the Dubai-owned firm raised its offer in a bidding war with Japan's Fast Retailing Co. Ltd.

Under the terms of the amended purchase agreement, Fast Retailing, owner of the Uniqlo chain, has until 5:00 pm on Thursday to make another offer.

If Fast raised its bid and Jones accepted it, the apparel company would have to pay Istithmar a termination fee of $34.7 million.

Meanwhile, Fast Retailing said the company had not ruled out raising its existing offer of $950 million.

Fast Retailing's bid is considered less attractive than Istithmar's lower 942.3 million dollar offer because Jones Apparel would be required to pay the Dubai firm a 34.7-million-dollar contract termination fee.

Fast Retailing has been determined to snare Barneys as it set its sights on becoming a global player in clothing retailing.

Its rival, Istithmar, is owned by Dubai World, a conglomerate which is in turn owned by the government of Dubai.