Jones Apparel Group has signed an amended definitive stock purchase agreement to sell its Barneys New York subsidiary to Dubai-based Istithmar for US$942.3m.

The Dubai based private equity firm looks to have outbid Japan's Fast Retailing for the moment, in the latest round of an ensuing bidding war.

Under the terms of the agreement with affiliates of Istithmar, Jones is still permitted to accept an offer from Fast Retailing if a "Superior Transaction" emerges.

Fast has previously submitted two offers to purchase Barneys, the latest for $950m.

The Istithmar Agreement allows Fast to make one more offer which must be received by 5pm tomorrow (9 August). In the event that Jones were to terminate the amended Istithmar Agreement it would be required to pay an affiliate of Istithmar a termination fee of $34.7m, the company said.