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Men's Wearhouse Offers to Buy Jos. A. Bank for $55 A Share in Cash

Men's Wearhouse Offers to Buy Jos. A. Bank for $55 A Share in Cash

Jos. A. Bank's (NASDAQ: JOSB) conquest to acquire Men's Wearhouse Inc (NYSE: MW) has taken a strange turn.

On November 26, Reuters reported that Men's Wearhouse offered a retaliatory offer of $55 per share in cash to acquire Jos. A. Bank. This comes just over a week after Jos. A. Bank retracted its offer to buy Men's Wearhouse on November 15.

In a statement Men's Wearhouse noted that the company has the “advantage in scale, growth and performance” to combine the two companies in creating synergies.

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“We believe we are the right acquirer for this combination and that our experienced management team is best positioned to execute the integration of our companies,” said Men's Wearhouse director of the board, Bill Sechrest.

Emincence Capital LLC, a New York based hedge fund holds about 30 percent of Men's Wearhouse had lobbied the company and other major investors to accept the takeover offer from Jos. A. Banks. “We are pleased to see that the board of Men's Wearhouse agrees with us and recognizes the substantial benefits of merging with Jos. A. Bank,” said Ricky Sandler, Eminence Capital's CEO.

Shares of Jos. A. Bank was trading higher by 10 percent following the news release. Shares were trading at a premium to the takeover price at $56.90 during Tuesday's morning trading session. Men's Wearhouse was also trading higher by more than five percent Tuesday morning.

Posted-In: Bill Sechrest Emincence Capital Jos. A. Bank Men's Wearhouse retaliatory offer Ricky SandlerM&A News Best of Benzinga


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