Men's Wearhouse increased the bid by 10% to approximately $1.78 billion. The company's offer now stands at $63.50 a share, up from $57.50 a share, for Jos. A. Bank. The deal expires on March 12 and is contingent upon Jos. A. Bank's ending an offer it made to acquire Eddie Bauer. Jos. A. Bank's directors must also redeem or invalidate the shareholder rights' plan that is currently in place. Men's Wearhouse said it could increase the bid to $65 per share if it can look at Jos. A. Bank's books and gets access to the company's management team.
"We rate MENS WEARHOUSE INC (MW) a BUY. This is driven by multiple strengths, 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 solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."