A. Bank rejects Men's Wearhouse bid, says open to talks
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[February 28, 2014]
(Reuters) - Men's apparel retailer Jos. A. Bank Clothiers Inc <JOSB.O>
rejected Men's Wearhouse Inc's <MW.N> revised takeover offer calling
it inadequate, but said it was willing to talk with its larger rival
about a higher bid.
Jos. A. Bank shares rose 3.8 percent in trading after the bell on
Thursday, while Men's Wearhouse shares rose 2.2 percent.
Men's Wearhouse on Monday raised its cash tender offer to Jos. A.
Bank shareholders to $63.50 per share from $57.50, and added it
could increase the offer to $65 if it was able to conduct limited
"Our board has authorized our meeting with you (Men's Wearhouse) to
establish a process that will enable you to advise our board as to
the highest price you are prepared to pay in an acquisition of Jos.
A. Bank," the company said on Thursday.
Jos. A. Bank, which itself has offered to buy outdoor apparel
retailer Eddie Bauer, said it was prepared to provide Men's
Wearhouse with a limited amount of due diligence information, under
Jos. A. Bank also said it would like to discuss the deal structure
and the proposed stock component to its shareholders.
The company's move is the latest in a saga that has played out since
last October, when Jos. A Bank made an offer to buy out its larger
rival. Men's Wearhouse turned the tables with its own offer and
then, in January, went hostile by taking its offer to its smaller
Around that time, the merger efforts attracted the attention of the
Federal Trade Commission who posed extra questions under a so-called
Jos. A. Bank said on Thursday it would require certainty of closing
a deal in light of the FTC's pending second request.
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In an effort to remain independent, Jos. A. Bank earlier this month
offered to buy Eddie Bauer.
The tuxedo retailer said it believes the Eddie Bauer deal had
"significant value," and that the FTC has granted early termination
of the waiting period under the Hart-Scott-Rodino Antitrust
Jos. A. Bank shares were up 3.8 percent at $62.60 in trading after
the bell after closing at $60.30 on Thursday on the Nasdaq.
Men's Wearhouse shares were up 2.2 percent at $51.51 after closing
at $50.42 on the New York Stock Exchange.
(Reporting by Siddharth Cavale and
Devika Krishna Kumar in Bangalore; Editing by Savio D'Souza and Lisa
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