Men’s Wearhouse and its investment bankers plan to review a number of strategic options, including an unsolicited $2.3 billion takeover bid by rival Jos. A. Bank, a big investor in the retailer said on Tuesday.
Eminence Capital, which owns a 9.8 percent stake in Men’s Wearhouse, disclosed the company’s deliberations in a publicly released letter to the retailer’s chief executive, Douglas Ewert.
The announcement of Men’s Wearhouse’s intentions comes two days before a deadline that Jos. A. Bank had imposed on its takeover bid, one that Men’s Wearhouse has steadfastly resisted since it was first made in September. Jos. A. Bank has said that its offer will expire on Thursday if the two sides do not begin talks.
During a call on Monday, Mr. Ewert told Eminence’s chief, Ricky C. Sandler, that the company would also consider other alternatives like a “significant†payout to shareholders, according to the letter.
“We strongly encourage you to promptly complete your review process and inform investors of your progress,†Mr. Sandler wrote in the letter. “We also fully expect you and the board, given the explicit commitment to explore all options, to actively engage with JOSB before their deadline,†he added, referring to Jos. A. Bank’s stock ticker symbol.
Shares of Men’s Wearhouse were up 3 percent after the letter was released.
A representative for Men’s Wearhouse wasn’t immediately available for comment. A spokesman for Jos. A. Bank declined to comment.
