FREMONT, Calif., Feb. 24 (UPI) -- The heated takeover battle between Men's Wearhouse and Jos. A. Bank reached a new high with the former raising its bid by 10 percent to $1.78 billion.
The two companies have been attempting to buy each other out, with Jos. A. Bank making the first move to acquire its larger competitor last October. The new deal, which expires March 12, boosts a previous offer, made in January, to buy the company at $57.50 to $63.50. Men's Wearhouse has offered to sweeten the deal if Jos. A. Bank offers to end its acquisition of Eddie Bauer.
“We urge the Jos. A. Bank board of directors to immediately engage in negotiations with Men’s Wearhouse so we can capitalize on the opportunity we have to enter into a transaction that creates significant value for shareholders of both companies,” Doug Ewert, Men’s Wearhouse’s president and chief executive, said in a statement.
It seems like the stock market was nodding in approval of the deal, with Jos. A. Bank's stock price rising to $62.45 in early trading from its Friday closing price of $55.05. Men's Wearhouse also saw a 7.7 percent boost to $48.59 in early trading.
Men's Wearhouse also filed a lawsuit to block Jos. A. Bank’s proposed acquisition of clothing retailer Eddie Bauer. Many saw Jos. A. Bank's acquisition of Eddie Bauer to slow down any advances made by Men's Wearhouse.
Men's Wearhouse, which at present has 1,100 men’s apparel stores, said a deal with Jos. A . Bank would give it access to the latter's 600 stores and reduce costs for consumers, increase reach and improve customer experience.
[Men's Wearhouse] [Bloomberg] [NYT]
