Eminence Capital has already cast its support for Men’s Wearhouse’s $1.6 billion hostile takeover bid for Jos. A. Bank and taken the smaller retailer to court.
Now the hedge fund, which owns a 4.9 percent stake in Jos. A. Bank, plans to add even more pressure: It disclosed its intention to nominate two directors for the retailer’s board, even as Men’s Wearhouse plans to nominate its own two candidates. (If elected, either group would replace Jos. A. Bank’s chairman, Robert Wildrick, and chief executive, Neal Black, both of whom are up for election this year.)
Why name two directors? Eminence’s chief executive, Ricky Sandler, said in a statement that his firm plans to support Men’s Wearhouse’s slate. But the hedge fund wants to make sure that someone will challenge Jos. A. Bank’s candidates in case Men’s Wearhouse’s slate doesn’t make the ballot.
Referring to the ticker symbols of Men’s Wearhouse and Jos. A. Bank, Mr. Sandler said:
“Given that JOSB’s nomination window will be closing soon, we feel compelled to submit our own slate at this time to ensure both that JOSB is pursuing the combination with MW as vigorously as possible, and that JOSB directors will be held accountable if they approve an alternative transaction or cause JOSB to take other action before the annual meeting that would frustrate a transaction with MW.
