NEW YORK (TheStreet) -- Jos. A. Bank Clothiers (JOSB) moved upward 4.7% in midday trading on Monday to $56.97 a share in the face of an offer from Men's Wearhouse (MW) to buy all outstanding shares of the company.
Men's Wearhouse announced that it has initiated a cash tender offer to purchase all outstanding shares of Jos. A. Bank Clothiers at $57.50 a share. The tender offer will expire at 5 p.m. Eastern on Friday, March 28 unless the offer is extended beyond that point. Men's Wearhouse will file offering documents, which contain the complete details, terms and conditions of the offer, with the Securities and Exchange Commission on Monday.
Furthermore, Men's Wearhouse announced Monday that it would notify Jos. A Bank that it plans to nominate independent candidates for two director positions on Jos. A Bank's board of directors at the company's annual meeting in 2014.
Men's Wearhouse climbed to as much as $52.53 a share shortly after 11:00 a.m. on Monday.
TheStreet Ratings team rates Jos. A. Bank as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOS A BANK CLOTHIERS INC (JOSB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."