Men’s Wearhouse Inc. has gone from target to hunter in less than two weeks. Investors like the way it looks.
The retailer’s shares jumped after it offered to buy smaller rival Jos. A. Bank Clothiers Inc. for about $1.54 billion. While investment banks have pitched the idea to Men’s Wearhouse for years, the board was spurred to make the offer after the Houston-based company was itself targeted by Jos. A. Bank last month, two people with knowledge of the matter said. The switch from target to buyer is dubbed the Pac-Man defense, after the video game character that can sometimes eat the ghosts chasing after it.