The Jones Apparel Group has raised its bid to take over the Maxwell Shoe Co. by 12.5% or $2.50 per share.

Originally, Jones, a New York apparel maker, bid $20 per share for Maxwell stock, or about $300 million. The new offer of $22.50 per share amounts to $333.9 million. With this new offer, Jones hopes to bring its three-month battle to acquire Maxwell to an end.  Originally, Jones offered about $300 million for Maxwell, which produces a branded shoe line under license from Jones. Maxwell rejected the offer saying it was too low. Maxwell stock has traded well above the Jones offer, which led to Maxwell repeatedly rejecting the offer.

Maxwell has advised its shareholders not to rush into accepting the new Jones offer, which is good until June 20, stating it wants to evaluate its effect on the company. Jones meanwhile has stated that without a merger agreement at that point, or sufficient support from Maxwell’s shareholders in ousting Maxwell’s board, it would walk away from the merger.

Maxwell’s management also announced increased expected revenues for 2004.  Sales are expected to reach between $255 and $250 million, an increase on the $250 to $255 million announced earlier. Earnings are expected to be $1.21 to $1.25 per share, up from the previous $1.18 to $1.22 per share.

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