Men's Wearhouse (NYSE: MW) is not giving up its pursuit of Jos. A. Bank (NASDAQ: JOSB) without a fight. The company again raised its unsolicited offer to buy the rival, boosting the takeover bid by 10 percent to about $1.78 billion. Men's Wearhouse is now offering $63.50 per share for Jos. A. Bank, up from its prior bid of $57.50 per share.
The announcement from Men's Wearhouse comes 10 days after Jos. A Bank announced that it was planning to buy the parent company of Eddie Bauer in a cash-and-stock deal worth about $825 million. At the time, Jos. A. Bank also made it clear that it may end the Eddie Bauer deal if it receives an acquisition offer that is superior.
Men's Wearhouse was displeased with the Eddie Bauer announcement, and today said that it has filed a lawsuit to block Jos. A. Bank's acquisition of Eddie Bauer. Men's Wearhouse says the Eddie Bauer offer was considered an attempt by Jos. A Bank to thwart any more efforts at negotiating a takeover bid.
Today's update is the latest in Jos. A. Bank's tug-of-war with Men's Wearhouse, as the two retailers took turns bidding to acquire the other. Most recently, Jos. A. Bank turned down an offer in February from Men's Wearhouse, saying it undervalued the company.
Jos. A. Bank shareholders have until 5 p.m. Eastern on March 12 to accept the amended offer from Men's Wearhouse.
-See this Men's Wearhouse press release
Jos. A. Bank turns down Men's Wearhouse again, may pursue Eddie Bauer instead
Men's Wearhouse willing to raise bid for Jos. A. Bank
Jos. A. Bank rejects Men's Wearhouse takeover bid
Men's Wearhouse turns tables with offer to buy Jos. A. Bank
Jos. A. Bank withdraws $2.3 billion Men's Wearhouse offer