US: Men's Wearhouse submits higher bid for Jos A Bank
In a statement today (6 January), Men's Wearhouse said it has offered to acquire the company for $57.50 per share, higher than its November offer of $55.
The hostile bid comes just days after the smaller rival upped its buyout defenses and is the latest move in a long-running battle between the two retailers.
Men's Wearhouse CEO Doug Ewert said its latest proposal to acquire Jos A Bank is "compelling" and provides "substantial value" and immediate liquidity to the firm's shareholders.
"Although we have made clear our strong preference to work collaboratively with Jos A Bank to realise the benefits of this transaction, we are committed to this combination and, accordingly, we are taking our offer directly to shareholders," Ewert said.
Last month, Jos A Bank declined a takeover offer by Men's Wearhouse for $55 per share in cash, claiming it "significantly undervalued" the business and its near and long-term potential.
The counter move by Men's Wearhouse came a week after Jos A Bank dropped a $2.3bn takeover offer for its rival.
On Friday (3 January), Jos A Bank strengthened its acquisition-defense plan by lowering the trigger for its shareholder rights plan to 10% from 20%.
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