Jos. A. Bank Rejects Men's Wearhouse Bid

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Feb. 28 (Bloomberg) -- Jos. A. Bank Clothiers agreed to meet with Men’s Wearhouse to discuss a potential merger after rejecting a sweetened $1.78 billion bid from the fellow menswear chain. Cristina Alesci reports on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Door open on making a deal with men's wearhouse.

Why is joseph a bank ready to sit down with its rival?

Or is it it is and that's because it has his back up against the wall.

Bank is under a tremendous amount of scrutiny not just from its investor base that men's wearhouse has taken this takeover saga to the delaware courts where it had it has accused joseph a bank of measures that are inappropriate and defending itself against hostile bids by men's wearhouse.

Men's wearhouse is accusing joseph a bank management team and board of putting up high barriers to a deal such as a poisoned pill, such as creating a deal with eddie power to make it too big for men's warehouse to take over.

All of those things men's wearhouse says is evidence that bqank is breaching its fiduciary it is by not coming to the table.

Joseph a bank is forced to come to the table at this point and reconsider talks.

How much more could joseph a bank really debt out of men's wearhouse?

My sources say that joseph a bank probably would not have invited men's wearhouse back to the table if it were not entertaining a deal at $65 per share.

That seems the price at which the parties can come back together.

Of course that would mean that joseph a bank would have to walk away from its yield to i eddiebauer and pay a breakup fee which is also a source of scrutiny.

It seems like a big mess at this point.

Where does this leave joseph a bank us current dance partner, if you will?

The most competent a part of the deal after the two parties agree on price, it might be antitrust.

Joseph a bank could demand some high protections from men's wearhouse to make it whole if regulators do not approve of this deal and that in turn may make men's wearhouse walk away from this deal.

It is very far from being done.

Joseph a bank could amend what is called a hell or high water provision is very unusual which would force men's wearhouse to close the deal with them even though regulators did not give it a sign off.

That is an issue of contention and we will have to see how it lays out over the next couple of weeks.

A lot of merger news -- there are a lot of activists agitating these days.

Stay with us because i want to talk about the deal environment, this onslaught of investor activism we are seeing.

I am bringing in paul sweeney and merger arbitrage strategist.

Let's start with joseph a bank in this saga that is going on in the men's retail sector.

It is interesting they seem to be going back-and-forth.

Ultimately, who wins?

I've been covering this from the beginning.

I am more than aware of what is

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


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