Boston, MA 02/24/2014 (wallstreetpr) – The Men’s Warehouse, Inc. (NYSE:MW) pounces on Jos. A. Bank Clothiers, Inc (NASDAQ:JOSB) again with its new 10% hike in the bid price to $1.78 billion and an offer to reconsider an increase in the price if Jos. A. Bank terminates its Eddie Bauer acquisition deal.
The Men’s Warehouse And Jos. A. Bank Saga
The two biggest men’s suit retailers entangled in a takeover battle during last October, after Jos. A. Bank placed an unsolicited bid to acquire Men’s Warehouse. Apparently, The Men’s Warehouse, Inc. (NYSE:MW), the bigger of the two retailers, not only declined the proposal from the small player, but also counterattacked it with its own hostile bid of $57.50 per share for it. Jos. A. Bank too rejected the proposal, citing the offered price as too low to be considered.
Moreover, on Jos. A. Bank Clothiers, Inc (NASDAQ:JOSB) entered into an acquisition deal of Eddie Bauer early this month in a bid to create itself as too big a company to be bought out. Pursuant to which, the The Men’s Warehouse, Inc. (NYSE:MW) came up with a fresh bid price of $63.50 per share today with an acceptance deadline of March 12. The Houston-based company also stated that it could even increase the offered price to $65 per share, which translates to $1.82 billion, onlyif Jos. A. Bank drops Eddie Bauer deal.
Men’s Warehouse Proposal Too Good To Be Declined
The Men’s Warehouse, Inc. (NYSE:MW) stated that the acquisition of the two retailers will not only improve greater reach and customer service, but will also facilitate in lowering down of costs through the operation of economies of scale.Over and above this, Men’s Warehouse also attempted to entice on Jos. A. Bank Clothiers, Inc (NASDAQ:JOSB)’s shareholders through its offer to share gains of the amalgamated company with them in the form of stocks. This has led some of the biggest shareholders of Jos. A. Bank to press it towards considering the offer.
While Jos. A. Bank does not get the same chivalry from Men’s Warehouse as its shareholders do, as the latter, sued it for its unreasonable and illegal action of entering in deal with Eddie Bauer. At the same time, Eminence Capital LLC, a hedge fund with nearly 10% holding in the The Men’s Warehouse, Inc. (NYSE:MW) and in on Jos. A. Bank Clothiers, Inc (NASDAQ:JOSB), filed a lawsuit against the directors of Jos. A. Bank for turning down the Men’s Warehouse offer and to formulate stringent takeover policies.
