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Eminence Capital puts more pressure on Jos. A. Bank

Jan. 14, 2014 at 4:01 PM   |   Comments

NEW YORK, Jan. 14 (UPI) -- Hedge fund Eminence Capital said it would nominate two people to the board of U.S. retailer Jos. A. Bank Clothier Inc. in a new strategy to promote a merger.

After Jos. A. Bank's offer to buy Men's Wearhouse for $2.3 billion was turned down in October, the larger rival turned the tables and offered, in two separate bids, to purchase Jos. A. Bank.

After the latest offer of $1.6 billion was turned down, Jos. A. Bank said it was seeking to make an acquisition that was viewed as an attempt to put the company out of reach of a Men's Wearhouse's bid.

On Monday, Eminence filed a lawsuit to stop Jos. A. Bank from intentionally derailing an offer it considered advantageous to shareholders.

The Wall Street Journal reported Tuesday that Eminence was attempting to put more pressure on Jos. A. Bank to accept the Men's Wearhouse deal.

"Given that [Jos. A. Bank's] nomination window will be closing soon, we feel compelled to submit our own slate at this time to ensure both that [Jos. A. Bank] is pursuing the combination with [Men's Wearhouse] as vigorously as possible and that [Jos. A. Bank's] directors will be held accountable," Eminence Capital said.

The hedge fund owns about 5 percent of Jos. A. Bank and close to 10 percent of Men's Wearhouse, the Journal said.

© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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