by Christopher Freeburn | February 24, 2014 9:22 am
On Monday, Men’s Wearhouse (MW) sweetened its offer for men’s apparel rival Jos. A. Bank Clothiers (JOSB), sending shares of both JOSB and MW stock climbing more than 7% in pre-market trading.
MW now says it will pay $63.50 per share of JOSB stock, a 10% increase over its previous offer. The higher bid would value JOSB at $1.78 billion. Additionally, MW indicated that it would be willing to give JOSB shareholders some stock in the combined company to partly finance the purchase, Bloomberg notes.
MW also indicated that its bid for JOBS could be raised to $65 a share if JOSB would agree to drop its recently-announced plan to purchase outdoor apparel retailer Eddie Bauer. The higher bid would increase the deal’s value of $1.82 billion. The latest offer will expire on Mar. 12.
MW and JOSB have traded takeover bids since October, when JOSB offered to purchase MW. After rejecting that bid, MW has made several offers to buy JOSB. The $825 million deal to purchase Eddie Bauer was widely seen as a way for JOSB to fend off increasing bids from MW.
JOSB stock closed at $55.05 a share on Friday.
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