Monday, January 6, 2014

Men's Wearhouse Offers $1.6 Billion for Jos. A. Bank

Men's Wearhouse Inc. commenced a cash tender offer to buy Jos. A. Bank Clothiers Inc. for about $1.6 billion, the latest bid in a months-long acquisition battle between the rival men's clothing retailers, reports MarketWatch..

The company also said it intended to nominate two candidates to Jos A. Bank's board of directors.

The Houston-based Men's Wearhouse said Monday it is offering Jos. A. Bank holders $57.50 a share in cash, a 52% premium over the close on Oct. 8--the day before Jos A. Bank's initial attempt to buy its rival--and a 5.7% premium over Friday's close of $54.41.

Men's Wearhouse's bid is the latest move in a war between the two rivals. Last week, Jos. A Bank amended its shareholder rights plan to reduce its ownership threshold to 10% of outstanding common shares from 20%, amid what it described as hostile actions by Men's Wearhouse that aren't in shareholder's best interests.

Jos A. Bank rejected a roughly $1.5 billion offer from Men's Wearhouse last month, saying the price "significantly" undervalued the company. The retailer, based in Hampstead, Md., first made an unsolicited $2.3 billion offer for Men's Wearhouse in early October, which was rejected.

It's Ben Bernanke printed money fueling these cash bids.

No comments:

Post a Comment