Men's Wearhouse (NYSE: MW) is finally giving Jos. A. Bank (Nasdaq: JOSB) the time of day.
Eminence Capital LLC, Men's Wearhouse's largest investor, announced on Tuesday, Nov. 12 that the company's investment team has agreed to review the previously rejected takeover bid from Jos. A. Bank.
Just last week, Eminence Capital urged Men's Wearhouse to reconsider the acquisition proposal and gave the company a Nov. 11 deadline to correspond with Jos. A. Bank. The hedge fund said it would exercise its rights as a shareholder to hold the Men's Wearhouse board accountable for exploring the takeover bid.
While it's still unclear whether this will move the proposed merger forward, Eminence Capital CEO Ricky Sandler is looking on the bright side. In a letter to Men's Wearhouse chief executive officer, Doug Ewert, Sandler wrote that he was encouraged by comments in a telephone call on Monday that the company would review all strategic options, including the merger and consider other alternatives like a "significant" payout to shareholders.
"We strongly encourage you to promptly complete your review process and inform investors of your progress," Sandler wrote in the letter. "We also fully expect you and the board, given the explicit commitment to explore all options, to actively engage with JOSB before their deadline," he added, reports The New York Times.
As news of the talks spread, Men's Wearhouse traded up 2.8 percent to $47.26 on Tuesday, Nov. 12 while Jos. A. Bank climbed 2.5 percent, suggesting that investors at both companies are hopeful about the recent developments.
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