Men’s Wearhouse has finally agreed to consider a takeover offer from Jos. A. Bank — at least, that’s what a Men’s Wearhouse shareholder says.
Hedge-fund manager Ricky Sandler of Eminence Capital disclosed in a letter that he spoke on the phone with Men’s Wearhouse CEO Doug Ewert on Monday, and that Ewert told him the retailer will consider a $2.3 billion buyout offer from Jos. A. Bank it had spurned in September.
Eminence — which has became the largest shareholder of Men’s Wearhouse, having disclosed a 9.8-percent stake last week — said he was “encouraged” by the phone call and that other options included distributing “significant” cash to investors.
A spokesman for Men’s Wearhouse didn’t immediately comment.
Jos. A. Bank, which has offered $48 a share for Men’s Wearhouse, said in a letter Nov. 1 that it would consider raising the offer if it is allowed access to its rival’s books, adding that it would walk away if it got no response by Nov. 14.
“We also fully expect you and the board, given the explicit commitment to explore all options, to actively engage with Jos. A. Bank before their deadline,” Sandler said.
Eminence previously said reasons for rejecting the Jos. A Bank takeover offer were “reckless and misinformed,” though it agreed with Men’s Wearhouse that the $2.3 billion bid was too low.
Shares of Jos. A. Bank rose 3.5 percent to $50.26 on Tuesday, reflecting rising optimism that Jos. A. Bank is gathering support for its bid.
Still, shares of Men’s Wearhouse rose just 2.4 percent to $44.08, well short of the $48 bid price — a sign of lingering doubts on Wall Street that a deal will get done.