The battle between The Men’s Wearhouse, Inc. (NYSE:MW) and Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) continues to heat up, as the clothing giants trade blows in their takeover battle. Men’s Wearhouse announced today that it is boosting its unsolicited tender offer for Jos. A. Banks to $63.50 per share, a $6 increase from its earlier offer of $57.50. The company also filed a lawsuit today to block Jos. A. Bank’s proposed acquisition of the clothing retailer Eddie Bauer, which they labeled a blatant attempt by Jos. A. Banks management to prevent the proposed takeover.
Nearly six-month takeover battle
The two clothing retailers have been involved in this brutal fight for corporate survival for almost six months. Today’s developments are the just the latest news in the ongoing acquisition saga between the two companies that began last October. Things began in mid-October when smaller clothing retailer Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) made an unsolicited bid for The Men’s Wearhouse, Inc. (NYSE:MW) while the company was embroiled in a dispute with founder George Zimmer. Shortly thereafter, Men’s Wearhouse then turned the tables on Jos. A Bank and began its own takeover effort.
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Bid could be increased to $65
As a sweetener, The Men’s Wearhouse, Inc. (NYSE:MW) also mentioned in its statement that it could potentially increase its bid up to $65 per share if it could undertake limited due diligence and if the Eddie Bauer deal is pulled and costs no more than $48 million to terminate.
Statement from Men’s Wearhouse
“We urge the Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) Board of Directors to immediately engage in negotiations with The Men’s Wearhouse, Inc. (NYSE:MW) so we can capitalize on the opportunity we have to enter into a transaction that creates significant value for shareholders of both companies,” elaborated Doug Ewert, Men’s Wearhouse’s president and CEO. “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.”