A Delaware judge on Tuesday expedited Men’s Wearhouse’s lawsuit against its smaller rival, Jos. A. Bank, in an ugly takeover battle between the men’s suit retailers that is playing out in court.
Earlier this week, Men’s Wearhouse sued to block Jos. A. Bank’s proposed acquisition of the clothing retailer Eddie Bauer for $825 million. The acquisition was seen as a defensive measure to protect Jos. A. Bank from its unwanted suitor.
The judge, J. Travis Laster, did not block the Eddie Bauer deal, but he did order Jos. A. Bank to quickly submit documents relating to the acquisition. The judge said he decided to expedite the lawsuit in part because the Eddie Bauer deal was likely a defensive maneuver.
“The allegations of the complaint, taken as a whole, create a colorable basis to believe that the features of the Eddie Bauer transaction are such that in their totality they may well fall outside the range of reasonableness,†Judge Laster said, according to a court transcript.
Jos. A. Bank declined to comment.
The judge also ordered Jos. A. Bank to give Men’s Wearhouse 10 days notice before closing a deal with Eddie Bauer, although the expedited lawsuit fuels Men’s Wearhouse’s legal efforts to block the deal.
The judge is scheduled to make a final decision March 25.
The suit is the latest in a takeover saga that goes back to October, when Jos. A. Bank first proposed an unsolicited offer to acquire Men’s Wearhouse. Men’s Wearhouse quickly flipped the conversation, coming back at Jos. A. Bank with an offer of its own.
Jos. A. Bank recently rejected a tender offer of $57.50 per share. Earlier this week, Men’s Wearhouse raised its offer to $63.50. Jos. A. Bank shareholders have until March 12 to consider the proposal.
