This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Eminence Capital Goes Activist On Men's Wearhouse

Eminence Capital is trying to force The Men's Wearhouse, Inc. (MW) to enter into negotiations with Jos. A. Bank for a possible merger at a higher price than the original offer.

Eminence Capital has revealed in a regulatory that it's going activist on The Men's Wearhouse, Inc. (MW). The retail chain's shares gained 7% during the regular trading day on Thursday, only to have virtually all of those gains erased in after-hours trading.

Men's Wearhouse Eminence capital

Men's Wearhouse rejected Jos. A. Bank's offer

The issue raised by Eminence Capital in its regulatory filing goes back to the offer Men's Wearhouse received from Jos. A. Bank Clothiers Inc (JOSB). Men's Wearhouse rejected the offer last month, saying that Jos. A. Bank was undervaluing Men's Wearhouse.

According to Eminence Capital's filing, the firm bought shares of The Men's Wearhouse, Inc. (MW) because it believed they were undervalued. Jos. A. Bank Clothiers Inc (JOSB)'s offer was worth $48 per share in cash, a 42.4% premium over the previous day's closing price. Men's Wearhouse said the offer didn't take into account its growth strategy and upside potential. It also said Jos. A. Bank's proposal was opportunistic and subject to a number of contingencies and risks which were unacceptable.

On the same day The Men's Wearhouse, Inc. (MW) rejected the offer from Jos. A. Bank, the company also said it adopted a shareholder rights plan with a limited duration.

Eminence Capital writes to Men's Wearhouse

Today, Eminence Capital sent a letter to the board of Men's Wearhouse, saying that the firm was disappointed in the retail chain's response to Jos. A. Bank Clothiers Inc (JOSB). The firm said it agrees that the offer undervalued Men's Wearhouse, but it believes that the board's other reasons for rejecting the offer were not valid.

According to the filing, the firm believes it is the board's fiduciary responsibility to tell their financial advisors to evaluate every strategic alternative that's available and also begin negotiations with Jos. A. Bank about a possible merger. The letter also stated that Eminence Capital would "fully exercise" its rights as a shareholder to "hold the Board accountable" if it doesn't take these requested actions by the close of business on Nov. 11.

Eminence Capital said it is still in discussions with The Men's Wearhouse, Inc. (MW)'s management, its board, other shareholders, Jos. A. Bank and "other interested parties" about the offer.

-By Michelle Jones

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs