Jan. 6 - Men's Wearhouse upped its bid for Jos. A. Bank. The war between the discount clothiers has sharply driven up shares of both retailers. Fred Katayama reports.
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Pac-Man, Round 2: Men's Wearhouse is going hostile, taking its bid for archrival Jos. A. Bank right to their shareholders. It upped its bid to $57.50 a share from $55 after Jos. A. Bank rejected it as inadequate and put up a defense, cutting the limit shareholders can own.
Cowen analyst John Kernan said it's an attractive price. "Given the sheer premium, it's hard to understand how Bank doesn't accept the offer. An activist investor would probably come in if Bank continues to reject the offer."
The war between the discount clothiers all began last October when the smaller guy, Jos. A. Bank made an offer for Men's. Men's rejected it and swallowed a poison pill to defend itself. Joe then walked away. Men's then pulled a Pac-Man move, turning the table to go after Bank. It says it also intends to name two directors to Bank's board.
Investors like the way their stocks now look. They sharply bid up shares of both retailers. Since Jos. A. Bank made the first move in October, its stock has risen more than 30 percent; Men's Wearhouse, up more than 43 percent.
It's clear both companies agree they're better off together. Problem is, each one wants to wear the pants in the family.
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