This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Eminence Backs Men's Wearhouse (MW) in Jos. A. Bank (JOSB) Battle

Stocks in this article: JOSB

NEW YORK (TheStreet) -- Will this song and dance never end? After months of will-they-won't-they speculation over a Jos. A. Bank (JOSB) and Men's Wearhouse (MW) partnering, Eminence Capital has stepped in to urge the former to accept the bid.

Eminence, which owns 4.9% in Jos. A. Bank common stock, announced Tuesday it intends to nominate two independent directors to the retailer's board at the company's annual meeting this year.

"Our nominees will be highly-qualified, retail industry experts who will be committed to maximizing shareholder value," said Eminence CEO Ricky C. Sandler. "We feel compelled to submit our own slate at this time to ensure both that JOSB is pursuing the combination with MW as vigorously as possible, and that JOSB directors will be held accountable if they approve an alternative transaction or cause JOSB to take other action before the annual meeting that would frustrate a transaction with MW.

"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," he continued.

Last week, Men's Wearhouse increased its bid for Jos. A. Bank to $57.50 a share from November's offer of $55 a share. The tender offer will expire on March 28, unless extended. The Houston-based business and larger of the two said it would also put forth two nominees to Jos. A. Bank's board.

On Monday this week, Eminence Capital, which also owns a nearly 10% stake in Men's Wearhouse, said it supports the company's bid and filed a court complaint with the Court of Chancery of the State of Delaware to block Jos. A. Bank from making an offer of its own or engaging in acquisitions or mergers with other retailers.

"Absent this Court's exercise of its equitable powers, the members of the Jos. A. Bank Board will succeed in killing a highly attractive business combination, destroying the value of Jos. A. Bank's shares through an ill-advised acquisition, and entrenching themselves," Eminence noted in the court complaint. "The Men's Wearhouse proposal is highly attractive and offers clear value that the stockholders of both companies would achieve through a combination of these two retailers-a view that is virtually unanimous amongst the investment community."

The prospect of an acquisition began in October last year when Jos. A. Bank made an unsolicited acquisition offer worth $2.3 billion for its larger rival. Shortly after, Men's Wearhouse rejected the bid and made an offer of its own, going from pursued to pursuer.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,653.63 +192.31 1.17%
S&P 500 1,946.60 +19.49 1.01%
NASDAQ 4,427.2280 +44.3810 1.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs