Jos. A. Bank Rejects Men's Wearhouse $1.61B Bid
Retailer Jos. A. Bank has rejected a $1.61 billion takeover offer from rival Men's Wearhouse. The two men's clothing shops have been engaged in a strange courtship for months. Bank said Friday that the offer is still too low and not in the best interest of shareholders, urging them to reject the offer, saying it significantly undervalues the company's potential. It also asked stock holders are to tender their shares and vote for its two candidates for Hampstead, Md., company's board.
DealBook: Jos. A. Bank Rejects Men’s Wearhouse Bid
Jos. A. Bank on Dec. 23 said it would not accept the offer of $55 a share from Men’s Wearhouse, which came from the company it had been trying to buy just weeks before. The Men’s Wearhouse turned the tables on Jos. A. Bank Clothiers last month after being pursued for months. By turning around and chasing after its former suitor, the Men’s Wearhouse revived the so-called Pac-Man defense, a tactic that gained popularity in the 1980s.
Men's Wearhouse Boosts Bid For Jos. A. Bank
Men's Wearhouse is raising its offer for Jos. A. Bank Clothiers to about $1.61 billion and taking the bid directly to its rival's shareholders. It also plans to nominate two people to the Jos. A. Bank board. Men's Wearhouse disclosed Monday that it is now offering $57.50 per share for Jos. A. Bank, up from its prior offer of $55 per share, or $1.54 billion. Jos. A. Bank rejected the previous offer in late December, saying it was too low.
Men's Wearhouse Rejects Jos. A. Bank
Men's Wearhouse rejected its smaller suitor. Its archrival known for its "Buy One, Get Three Free" suits, Jos. A. Bank, offered a big premium for Men's Wearhouse. But the apparel chain is playing hard-to-get, saying the $2.3 billion cash bid "significantly undervalues" its growth prospects and could raise antitrust issues. A combination would create a network of more than 1,700 stores nationwide and Canada.
Jos. A. Bank and Men's Wearhouse Merger Will Spark the Great Suit War
Belus Capital Advisors' Brian Sozzi lists his three reasons why the Jos A Bank and Men's Wearhouse merger will go through. First, the companies can lower prices to gain new consumers, inciting a U.S. suit war versus department stores like Macy's and Bloomingdale's. Second, the business is very low margin and the two companies can work together to cut costs and expenses.
Jim Cramer Says He'd Be a Seller of Jos. A. Bank and Men's Wearhouse
TheStreet's Action Alerts PLUS Co-Portfolio Manager Jim Cramer says Jos. A. Bank has essentially taken a poison pill by announcing it will buy Eddie Bauer for $825 million in a cash and stock deal. Cramer says Jos. A. Bank's original idea to team up with Men's Wearhouse made sense but Eddie Bauer does not. Cramer says he would be a seller of both Men's Wearhouse and Jos. A. Bank if the deal holds.