Jan 13 (Reuters) - Men’s Wearhouse Inc’s largest shareholder, Eminence Capital LLC, plans to support the retailer’s $1.61 billion offer for rival Jos. A. Bank Clothiers Inc, the Wall Street Journal reported, quoting people familiar with the matter.
Eminence’s Chief Executive Ricky Sandler wrote in a letter to be sent to Jos. A. Bank’s board on Monday that the company “will not be able to deliver comparable value to shareholders through any other strategic transaction or action”, the newspaper said. ()
Jos. A. Bank, a century-old retailer of men’s tailored and casual clothing, offered $2.3 billion for Men’s Wearhouse last year that was swiftly rebuffed by its larger rival. Weeks later, Men’s Wearhouse struck back with a bid to acquire Jos. A. Bank.
Last week, Men’s Wearhouse mounted a hostile $1.61 billion bid for Jos. A. Bank in an attempt to break the resistance of its smaller rival. It offered $57.50 per share, after Jos. A. Bank rejected its earlier $55 per share offer.
Earlier this month, the New York-based Eminence Capital, which owns about 10 percent of Men’s Wearhouse and about 5 percent in Jos. A. Bank, said it supported a merger of the two suit retailers.
The letter also urges Jos. A. Bank to negotiate with Men’s Wearhouse, and opposes any acquisition by Jos. A. Bank, the Wall Street Journal said.
Eminence, Jos. A. Bank and Men’s Wearhouse were not immediately available for comment outside regular U.S. business hours.