Men's Wearhouse Gets Hostile With Jos. A. Bank Offer (Update 1)

This story has been updated from 9:57 am EST with comments from Jos. A. Bank.

NEW YORK (TheStreet) -- The battle for suits continues.

Men's Wearhouse (MW) shares were rising Monday after the menswear specialty retailer boosted its takeover proposal for Jos. A. Bank Clothier (JOSB), commencing a cash tender offer for all of the Hampstead, Md.-based company's outstanding shares at $57.50  share, or $1.61 billion. In November, Men's Wearhouse made an offer of $55 a share, for a total of $1.5 billion.

The Houston-based company said in a release Monday that the latest cash offer offers Jos. A. Bank shareholders "substantial value" and "immediate liquidity." The tender offer, commenced by Men's Wearhouse subsidiary Java Corp., expires on March 28. 

"Although we have made clear our strong preference to work collaboratively with Jos. A. Bank to realize the benefits of this transaction, we are committed to this combination and, accordingly, we are taking our offer directly to shareholders," said Men's Wearhouse CEO Doug Ewert in the release.

Investors were happy they may finally be getting a deal between the two competitors. Men's Wearhouse shares were up 2.8% to $52.03 at last check. Jos. A. Bank shares were climbing 4.5% to $56.85 on Monday.

Men's Wearhouse is also nominating two independent directors to serve on Jos. A. Bank's board.

The nominees include:

John D. Bowlin, a consumer packaged goods industry veteran, who was previously president and CEO of Miller Brewing Company, and who has held senior executive positions at Kraft Foods North America, Kraft Foods International, Oscar Mayer Food Corporation and General Foods USA.

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