Men’s Wearhouse turns hostile in pursuit of Jos. A. Bank
Company has been under pressure from activist shareholders to capture a bigger share of market
Men’s Wearhouse store on 6th Avenue in New York. Men’s Wearhouse shares rose nearly 3 per cent. Photographer: Craig Warga/Bloomberg
Men’s Wearhouse mounted a hostile $1.61 billion bid for Jos. A. Bank Clothiers in an attempt to break the resistance of its smaller rival and pacify investors hungry for a merger of the suit retailers.
Shares of Jos. A. Bank were trading below the offer price of $57.50 on yesterday, indicating doubt among investors that the offer – the second by Men’s Wearhouse in the space of six weeks – would be enough to seal the deal. Analysts said the bid, at a 6 per cent premium to Jos. A. Bank’s closing price on Friday, was likely to nudge the two companies closer to the creation of a combined chain selling suits and renting tuxedos from 1,700 stores in North America. Men’s Wearhouse shares rose nearly 3 per cent. It has been under pressure from activist shareholders to capture a bigger share of a market. (Reuters)