Men’s Wearhouse (MW) is continuing to press its bid for rival men’s apparel retailer Jos. A. Bank (JOSB).
Earlier this month, MW increased takeover bid for JOSB, offering $57.50 per share for JOSB stock. In a new letter sent to the target’s independent directors, MW noted that under a proposal from JOSB last year to merge the two companies, Robert Wildrick, JOSB’s chairman, would have headed the combined company. Now that MW was trying to acquire JOSB and Wildrick wouldn’t head the merged firm, he had a “conflict of interest” that inclined him to oppose the deal, the letter suggested, according to a report in the Wall Street Journal.
In the letter, MW said that it might raise its bid for JOSB if it could conduct due diligence on the retailer and suggested that JOSB’s board should create a special committee to review its latest takeover offer. JOSB rejected MW’s first offer in November and its latest bid, saying that both bids undervalued the company.
The latest bid sent JOSB stock up sharply earlier this month.
JOSB launched the bidding war between the two men’s retailers when it offered $2.3 billion for MW in October.
Investors were apparently pleased with MW’s latest moves. JOSB stock gained almost 1% in Thursday morning trading. JOSB stock closed at $54.86 on Wednesday. Over the past six months, JOSB stock has climbed more than 33%. While JOSB stock rose on Thursday, MW stock sank about 1%.