New York-based Eminence, owner of 4.9% of Jos. A. Bank shares, has been trying to play match maker between the company and rival Men's Wearhouse (MW) .
Eminence also owns 9.8% of Men's Wearhouse and criticized that board last year when Men's Wearhouse turned down a $2.3 billion merger offer from Jos. A. Bank. Men's Wearhouse has since turned around and offered $1.61 billion to acquire Jos. A. Bank.
Men's Wearhouse has also indicated it intends to nominate candidates for Jos. A. Bank's board. Eminence CEO Ricky C. Sandler said his firm is "very encouraged" by that decision and said Eminence would withdraw its candidates to Jos. A. Bank's board and support Men's Wearhouse if they follow through."However, given that [Jos. A. Bank]'s nomination window will be closing soon, we feel compelled to submit our own slate at this time to ensure both that [Jos. A. Bank] is pursuing the combination with [Men's Wearhouse] as vigorously as possible," Sandler said. The firm also said that it was calling off plans to seek a special meeting of Men's Wearhouse shareholders. Eminence has filed suit in Delaware Chancery Court trying to force Jos. A. Bank to negotiate with its suitor. The investor has said, in court filings, that it believes Jos. A. Bank may be in the process of making another acquisition, something the fund said would be detrimental to a merger with Men's Wearhouse. "We continue to urge Jos. A. Bank to sit down with Men's Wearhouse and engage in meaningful, good faith negotiations in pursuit of a business combination on terms that could deliver significant value for Jos. A. Bank shareholders," Sandler added.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV