Feb 18 Jos. A. Bank Clothiers Inc's
planned acquisition of outdoor sportswear retailer Eddie Bauer
defies logic given that the companies cater to different
customers, according to one of the men's apparel retailer's
The deal is "a poor strategic fit," said Eminence Capital
LLC, which has been pushing for a merger between Jos. A. Bank
and rival Men's Wearhouse Inc. Eminence is the top
shareholder in Men's Wearhouse.
Jos. A. Bank and Men's Wearhouse - both of whom are known
for renting and selling tuxedos - have made and spurned offers
for each other over the past few months. Earlier this month,
Jos. A Bank rejected a $1.6 billion offer from Men's Wearhouse.
Last week, Jos. A. Bank offered to buy Eddie Bauer for $825
million, which would not only keep it independent, but also mark
its move into women's apparel and footwear.
"Not only have you turned your back on an acquirer prepared
to pay a substantial premium for the company, but you plan to
deploy significant and valuable company resources into a
troubling and risky sector ... in which you have absolutely no
experience," Eminence said in a letter to Jos. A. Bank on
More than 40 percent of Eddie Bauer's sales are to women and
virtually all of its products are outside of Jos. A. Bank's core
men's tailored clothing business, said the New-York based asset
Jos. A. Bank was not immediately available for comment.
The company's shares were down 1.8 percent at $54.13 in
afternoon trading on the Nasdaq. Men's Wearhouse shares were up
slightly at $44.2 on the New York Stock Exchange.