Saturday, August 30th17.3°C
22817
22871

Another twist in merger of the suits as Men's Wearhouse ups takeover offer for Jos A Bank

NEW YORK, N.Y. - Men's Wearhouse said Monday that it was boosting its takeover offer for Jos. A. Bank yet again, spurring hopes that the months-long saga might finally be coming to an end.

Men's Wearhouse raised its takeover offer for its rival by 10 per cent to about $1.78 billion. Shares of both companies rose.

The two companies cater to different customers — Jos. A Bank is geared to a more established male professional, Men's Wearhouse a slightly younger man — but they offer similar types of clothing: suits and sport coats. As competition has increased in the sector and shoppers cut back due to the uncertain economy, analysts have said a merger is in the best interest of both companies. But agreement on terms has proved difficult. They have been attempting a combination since October.

Men's Wearhouse Inc. said Monday it's now offering $63.50 per share for Jos. A. Bank, up from its prior bid of $57.50 per share. The new offer, which is set to expire on March 12, is conditioned on Jos. A. Bank ending an offer it made for Eddie Bauer. Other conditions include Jos. A. Bank's directors redeeming or invalidating the shareholder rights plan that's in place.

Men's Wearhouse said it may even raise the bid further, to $65 per share, if it is able to examine Jos. A. Bank's books and given access to the company's management team.

Jos. A Bank Clothiers Inc. said its board is reviewing the offer.

The raised offer comes 10 days after Jos. A Bank announced that it was planning to buy the parent company of Eddie Bauer in a cash-and-stock deal valued at $825 million. But at the time Jos. A. Bank left the door open, saying that it may end the Eddie Bauer deal if it receives an acquisition offer that is superior.

Meanwhile, Men's Wearhouse said Monday that it filed a lawsuit in Delaware against Jos. A. Bank and its board and the companies involved in the Eddie Bauer transaction, saying that the move was designed to thwart its offer. It wants the court to order Jos. A. Bank's board to rescind its shareholder rights plan and provide an order stopping the companies from moving forward with the Eddie Bauer deal.

The back-and-forth between Men's Wearhouse and Jos. A. Bank started in October, when Jos. A. Bank offered to buy its larger rival for $2.3 billion. Men's Wearhouse scoffed at that offer, and turned the tables, offering to buy its rival for $1.54 billion. But after Hampstead, Md.-based Jos. A Bank turned down that overture, Men's Wearhouse increased its bid to $1.6 billion.

Shares of Men's Wearhouse rose $3.40, or 7.5 per cent, to close at $48.51. The stock had been down about 11 per cent since the beginning of the year. Jos. A. Bank's stock rose $4.99, or 9.1 per cent, to $60.04. The stock had gained less than 1 per cent in 2014.

The Canadian Press


Read more Business News

22439


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9194+0.0003
Gold1281.70-2.1001
Oil95.96+1.29
Lumber348.40+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



22997

FEATURED Property
13587623891 Casorso Road, Kelowna, BC
1 bedrooms 1 baths
$3,950,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_








Member of BC Press Council


22837