Jan 13 Eminence Capital LLC, a key shareholder
in both Men's Wearhouse Inc and Jos. A. Bank Clothiers
Inc, said it would seek a court ruling to prevent Jos.
A. Bank from refusing to discuss a $1.61 billion takeover offer
from Men's Wearhouse.
The New-York based asset management firm - which owns about
10 percent of Men's Wearhouse and about 5 percent of Jos. A.
Bank - urged Jos. A. Bank to start talks with Men's Wearhouse.
"... We firmly believe that you will not be able to deliver
comparable value to shareholders through any other strategic
transaction or action available to you," Eminence Chief
Executive Ricky Sandler said in a letter to Jos. A. Bank's board
released on Monday.
Eminence accused the directors of the century-old retailer
of men's tailored and casual clothing of breaching their
fiduciary duties by not negotiating a deal with its rival.
The firm said it would file an injunction in the Court of
Chancery of the State of Delaware to prevent Jos. A. Bank from
pursuing another deal.
Jos. A. Bank offered $2.3 billion for Men's Wearhouse last
year that was swiftly rebuffed by the larger company. Weeks
later, Men's Wearhouse struck back with a bid to acquire Jos. A.
Last week, Men's Wearhouse mounted a hostile $57.50 per
share bid, after the company rejected its earlier $55 per share
Eminence, which owns about 10 percent of Men's Wearhouse and
about 5 percent of Jos. A. Bank, said earlier this month that it
supported a merger of the two suit retailers.
Jos. A. Bank and Men's Wearhouse were not immediately
available for comment outside regular U.S. business hours.