The plot has taken yet another twist in the men’s suit saga.
Jos. A. Bank rebuffed an offer for a potentially sweetened takeover bid from rival Men’s Wearhouse on Sunday, even as reports surfaced that it is in merger talks with Eddie Bauer.
In a testily worded letter, Jos. A. Bank Chairman Bob Wildrick accused Men’s Wearhouse of talking out of both sides of its mouth as the public battle between the two management teams escalated.
Specifically, Wildrick noted in the letter to Men’s Wearhouse CEO Doug Ewert that the rival had previously said a merger “raises significant antitrust concerns.”
That was last fall, when it had been fending off a merger proposal by Jos. A. Bank before launching its own counteroffer in January.
“Men’s Wearhouse has yet to explain why the antitrust concerns it raised just seven weeks before its offer for Jos. A. Bank do not apply to its offer for Jos. A. Bank,” Wildrick wrote to his countersuit. “Your silence has been misleading to both Jos. A. Bank and Men’s Wearhouse stockholders.”
Jos. A. Bank has been on the defensive since last month, saying it has been exploring other potential strategic mergers to improve its business and raise its stock price.
On Saturday, the Wall Street Journal reported that Jos. A. Bank is in talks to buy Eddie Bauer, the outdoor clothing chain. The latter is owned by Golden Gate Capital, a buyout firm that had backed Jos. A. Bank’s bid for Men’s Wearhouse.
Dangling the prospect of an Eddie Bauer deal could be a tactic for Jos. A. Bank to extract better terms in a deal with its middlebrow clothing chain rival, which has offered $57.50 a share.