NEW YORK (TheStreet) -- After weeks of dancing around bids, an activist investor is turning up the heat on Men's Wearhouse (MW), urging it to reevaluate its options.
The men's retailer rejected a $2.3 billion, or $48 a share, takeover bid from Jos. A Bank Clothiers (JOSB) in October on the belief the unsolicited offer undervalued the brand. Men's Wearhouse rejected its suitor for a second time earlier this week when Jos. A Bank said it was willing to up its offer if it had access to the company's non-public financial information.
Investment firm Eminence Capital urged the Houston-based company to reevaluate its stance on a buyout from Jos. A Bank or any additional interested party, reports CNBC. Adding weight to its request, the hedge fund disclosed it had purchased a 9.8% stake in the business in a Securities and Exchange Commission filing Thursday.
Men's Wearhouse shares spiked 7.1% to $45.43, while Jos. A Bank gained 1.8% to $48.34.
TheStreet Ratings team rates Men's Wearhouse as a Buy with a ratings score of A. The team has this to say about their recommendation:
"We rate Men's Wearhouse Inc (MW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."