Men’s Wearhouse Advised to Consider Jos. A. Bank Bid

Eminence Capital LLC (New York) has taken a 9.8 percent stake in Men’s Wearhouse Inc. (Houston), making it the retailer’s largest investor. And it is believed to be urging the company to engage in takeover or merger talks with Jos. A. Bank Clothiers Inc. (Hampstead, Md.).

According to Bloomberg News, Eminence told the Men’s Wearhouse board of directors that while it agreed that Jos. A. Bank’s $2.3 billion offer price was too low, the company’s other reasons for rejecting the bid were “disingenuous at best and reckless and misinformed at worst.”

The Men’s Wearhouse board had replied to the offer that its prospects were better as a standalone company.

Eminence said there should be a price Jos. A. Bank would be willing to pay that would fairly compensate Men’s Wearhouse’s shareholders. The fund also said it would exercise its right as a shareholder to hold Men’s Wearhouse’s board accountable if it fails to engage in talks with Jos. A. Bank and instruct financial advisers to evaluate other options by November 11.

Jos. A. Bank chairman Robert Wildrick said in a letter he would terminate the bid if Men’s Wearhouse doesn’t engage in discussions.