JOSB, MW: Jos. A. Bank Rejects Latest Men’s Wearhouse Offer

by Christopher Freeburn | February 28, 2014 9:38 am

JOSB, MW: Jos. A. Bank Rejects Latest Men’s Wearhouse Offer

josabanklogo JOSB, MW: Jos. A. Bank Rejects Latest Mens Wearhouse Offer[1]On Thursday, Jos. A. Bank Clothiers (JOSB[2]) turned down the latest acquisition proposal from rival Men’s Wearhouse (MW[3]), but signaled that it would consider a higher bid. The news sent JOSB stock up almost 4% in Friday morning trading, while MW stock climbed more than 4%.

JOSB shares gained after the company said its board had authorized talks with MW regarding a potentially higher purchase price for JOSB. In addition to the talks, JOSB said it would permit MW to conduct a restricted level of due diligence, if certain conditions were agreed to, and was willing to talk with MW about the structure of a potential deal, Reuters notes.

Earlier this week, MW hiked its bid for JOSB[4] to $63.50 a share. It had previously offered $57.50 per share for JOSB. MW also noted that it would be willing to raise the bid to $65 a share in exchange for a look at JOSB’s books.

Two weeks ago, JOSB said it would spend $825 million to acquire outdoor apparel retailer Eddie Bauer[5], a move meant to complicate a hostile takeover by MW.

The bidding war between JOSB and MW was kicked off in October[6] when JOSB extended a $2.3 billion offer to acquire MW. That bid was declined and MW has since made several offers to acquire JOSB.

JOSB stock has climbed more than 50% over the past six months, while MW stock has gained more than 30%.

More JOSB, MW News:

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/01/josabanklogo.jpg
  2. JOSB: http://studio-5.financialcontent.com/investplace/quote?Symbol=JOSB
  3. MW: http://studio-5.financialcontent.com/investplace/quote?Symbol=MW
  4. hiked its bid for JOSB: http://investorplace.com/2014/02/josb-mw-mens-wearhouse-ups-offer-jos-bank/#.UxCdLNxhOf0
  5. to acquire outdoor apparel retailer Eddie Bauer: http://investorplace.com/2014/02/josb-jos-bank-buy-eddie-bauer-825m/#.UxCdS9xhOf1
  6. was kicked off in October: http://investorplace.com/2013/10/jos-a-bank-wants-to-buy-mens-wearhouse-for-2-3b/#.UxCdzdxhOf0
  7. JOSB: Why Men’s Wearhouse Is So Desperate to Buy Jos. A. Bank: http://investorplace.com/2014/02/mw-stock-josb-stock-buyout/
  8. JOSB Stock: Jos. A. Bank Investors Like Latest Men’s Wearhouse News: http://investorplace.com/2014/01/josb-stock-jos-bank-investors-like-latest-mens-wearhouse-news/
  9. Jos. A. Bank Isn’t a Good Fit for Men’s Wearhouse: http://investorplace.com/2013/10/josb-mw-mens-wearhouse/

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