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

Men's Wearhouse Willing To Boost Jos. A. Bank Bid

NEW YORK (The Deal) -- Men's Wearhouse (MW) on Thursday urged Jos. A. Bank Clothiers (JOSB) to come to the table, saying that under certain conditions it might be willing to sweeten its $1.61 billion bid for the rival clothier.

Fremont, Calif.-based Men's Wearhouse in a letter to independent Jos. A. Bank directors said "our strong preference is to work collaboratively" and come to a consensual agreement. Men's Wearhouse on Jan. 6 launched a cash tender to buy Jos. A. Bank shares for $57.50 apiece, and submitted notice it intends to nominate candidates to the Hampstead, Md.-based target's board.

Men's Wearhouse in the letter said it is prepared to increase its offer price "if you can demonstrate or we can discover additional value through discussions or limited due diligence." The company also questioned Jos. A. Bank's management's ability to consider the offer without bias.

The letter is the latest shot in an ongoing battle between the two men's clothing retailers. Jos. A. Bank last year offered $2.3 billion for its larger rival but walked away after the bid failed to spark negotiations. Men's Wearhouse returned later in the year with a bid of its own which Jos. A. Bank has called "inadequate and opportunistic."

Must Read: Chrysler Drives Fiat Profit

Analysts have said that while the two companies seem to agree on the merits of a combination, they differ on valuation and who would run a combined entity.

Men's Wearhouse in its latest letter quotes Jos. A. Bank chairman Robert N. Wildrick from October 2013 calling the two companies "ideal partners." The company notes that Wildrick's attitude has changed now that Men's Wearhouse is the aggressor, and urged independent directors to look past the CEO's words.

"Now, when Men's Wearhouse is proposing to acquire JOSB, and Mr. Wildrick will not be CEO of the combined business, JOSB, rather than engaging in discussions that might lead to that 'ideal' combination, is pursuing an alternative transaction, including a material acquisition," Men's Wearhouse CEO Douglas S. Ewert wrote. "Obviously, in considering Men's Wearhouse's offer to acquire the company, Mr. Wildrick has a conflict of interest that might naturally make him prefer some other strategic alternative."

Men's Wearhouse urged the board to form a special committee of independent directors to reevaluate its offer.

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
JOSB $64.98 -0.05%
MW $17.42 -2.13%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs