Jones Apparel Buys Maxwell Shoe for $346M

Jones Apparel Group Inc. said Friday it agreed to acquire Maxwell Shoe Co. for a sweetened bid of $346 million, resolving a contentious merger battle.

On Wednesday, the companies said they began friendly talks after Jones Apparel raised its bid a second time to $23.25, about 60 cents higher than Maxwell's closing price Tuesday.

The offer was about $11 million, or 3.3 percent higher, than a bid made last month.

The transaction is expected to close in early July.

Friday, Maxwell shares rose 24 cents, or 1 percent, to close at $23.22 on the Nasdaq Stock Market.

Jones Apparel shares fell 13 cents, or 0.3 percent, to end at $38.59 on the New York Stock Exchange.

Maxwell, a Hyde Park, Mass., shoe designer, has about 14.9 million shares outstanding.

Jones Apparel, based in Bristol, Pa., had indicated it would drop its offer if the companies could not negotiate a deal.

Last week, when the offer stood at $22.50 a share, proxy advisory firm Institutional Shareholder Services recommended Maxwell shareholders vote to replace the board in an effort to bring about a deal.

Maxwell, which had already rejected that offer, responded by again urging its shareholders to vote down the deal and accused Jones Apparel of trying to acquire it at “the lowest possible price.”

Jones Apparel wants to acquire Maxwell's AK Anne Klein shoe business to complement its own AK Anne Klein women's clothing line.