Jos. A. Bank’s plan to fend off its unwanted suitor does not appear to have worked.
Jos. A. Bank has until March 12 to consider the new proposal.
The offering comes less than two weeks after Jos. A. Bank announced a plan to buy the clothing company Eddie Bauer in what appeared to be an attempt to discourage any more advances from Men’s Wearhouse.
In its announcement, Men’s Wearhouse said it could “potentially†increase its offer to $65 per share if it could conduct limited due dilligence and if the Eddie Bauer deal falls through and costs less than $48 million to terminate.
“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. “Our increased cash offer would provide Jos. A. Bank shareholders with a substantial premium and immediate and certain value, and we are prepared to further increase our offer price on the basis of limited due diligence.â€
A representative for Jos. A. Bank could not be immediately reached for comment.
Monday’s development is the latest in the ongoing takeover battle between the two men’s apparel companies that began last October, when Men’s Wearhouse resisted an unsolicited bid from its smaller rival. Instead, the company turned the tables on Jos. A Bank and began its aggressive pursuit of an acquisition.
Both companies have since lowered their poison pill thresholds, or what percentage an investor must own to trigger a mechanism that dilutes the overall shares.
In January, Men’s Wearhouse announced it would be willing to raise its offer of $57.50, which Jos. A. Bank had rejected earlier in the month.
