Why Men's Wearhouse Wants to Buy Jos. A. Bank

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Nov. 26 (Bloomberg) -- Stifel Nicolaus' Richard Jaffe and Cappello Group's Gene Urcan discuss why Men's Wearhouse wants to buy Jos. A. Bank. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Covers men's wearhouse.

All right, richard jaffe, why is this a good deal?

If you put two rivals and put them together, there's obviously the economies of scale.

But it is the opportunity to seize competing with one another and become much more dominant in the marketplace.

Gene urcan, do you agree?

I do agree.

I think this is the right transaction at the right time.

Men's wearhouse is a very solid suitor.

The combined entities, there's a lot of benefits there.

Cost-cutting measures.

Shareholders have got to be excited to read since the potential deal has been searching.

Obviously shareholders are extremely happy.

I think it's a great deal and i think the deal does get done.

Richard rathke -- richard jaffe, why is this men's wearhouse coming back and bidding for jos.

A bank, white is back and forth?

I think they were a bust that initial offer because i do not inc.

They wanted to be taken over.

I think that has changed now with the very dominant shareholder coming in with a 10% stake.

Mns capital?

Correct.

Encouraging men's wearhouse to pursue opportunities.

I think they recognize the opportunity and they are grabbing the gold ring, taking advantage of the situation.

Richard jaffe, what is the situation when it comes to making suit in the united states for men?

It's an exciting development for men's wearhouse.

They acquired a massachusetts- based production facility.

Now made to measure suits for 600 bucks.

Gene urcan, would you go for $600 made in america suit?

I would.

Can they make money selling that?

Absolutely.

I agree.

What about the combination of the companies?

Are there geographical complexities for the industries?

I do not know if it is a geographic fit.

It is classic styling versus modern stylist, good, better, best stratification.

They need to differentiate clearly between the two businesses.

Gene urcan, comment on the potential for rival bidders.

Any third parties going to comment?

-- come in?

I don't. as the other guest mentioned, i think the deal does get done.

I think that jos a. bank would be silly not to do this.

If it is bid up, it will be by men's wearhouse, not another suiter.

You are talking about a transaction where you are looking at the lesser of one or two evils.

What about the quality?

Are they similar in what they offer to the customer?

You know, it is not a place i shop, whether it is men's wearhouse or jos.

A. bank.

I believe they have similar products.

By combining the two, you have an increase of market share and

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

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