Anatomy of a Takeover: Shopping for Men’s Wearhouse

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Oct. 28 (Bloomberg) -- Gilbert Harrison, chairman & founder at Financo, explains what’s behind Jos. A. Bank’s attempted takeover of Men’s Wearhouse. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Season upon us.

A good time for mergers and acquisitions and fistfight.

Are you involved in the transaction or everything else?

We are the investment bankers for jolson inks -- joseph inks and goldman sachs.

-- joseph banks.

We made an offer that was 42% above the price the day we made the offer.

The direct heirs just do not want to sell the company.

The shareholders of men's wearhouse have overwhelmingly told the company that they think it is very good for the company.

Almost 40% of the shareholders overlap with joseph banks.

For them it is a win-win situation because they can get the cash we offer to pay and hold onto the joseph inc.

Stock.

Is this a classic class a /class b shareholder?

A classic example of entrenched direct heirs that are not looking at fiduciary duties.

They are saying they will improve the company.

We have not seen it so far.

Our price is 18% higher than the six-year high for men's wearhouse.

There is nobody else.

A company that is an identity crisis.

George cymer is no longer there, the founder.

-- george zimmer is no longer there.

They do not even want to talk to us.

We have told them we are open to talking.

A name that everyone knows, allen question.

He is on the board.

One of the finest retail executives.

A friend of mine.

I have not talk to alan, maybe i should.

I do not think it is my place too.

He has to make his own decision.

He is one of the finest corporate people i know and understand fiduciary duty.

Why they will not open up and talk to wes, i do not know.

To the products gross over?

To me, they do not.

Joseph inc.

-- banks is a little bit higher.

I buy a lot of products.

Today it is you buy a shirt and get something else for free.

I told them do it with bowties.

They are a total vertical company.

They manufacture products.

Tremendously good gross profit margins.

The guy who built the company in 1999 when he took over as the ceo, he was on the board, i think 1.2 million of stock would be worth a billion -- it is huge.

He took it from 19 million -- how far do they take the effort right now?

You will have to wait and see.

Not going to give away any secrets right now.

We will do everything we can because we think the acquisition makes sense.

You represent trying to acquire men's wearhouse.

Yes, sir.

The drama continues.

Time now for the agenda early look at the stories shaping the day.

That's an interesting meeting in washington.

Secretary of state, treasury, commerce hosting foreign investors.

Foreign direct investment in the u.s. has fallen way off, 28% in the past year.

Seeing a decline.

Bonds being bought by foreigners

This text has been automatically generated. It may not be 100% accurate.

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