The Men’s Wearhouse (MW) shares gained more than 5% in early trade Friday, printing a new 52-wk high of $52.94 as Men’s Wearhouse and tuxedo retailer Jos. A. Bank Clothiers Inc (JOSB) look forward to talk on a possible merger.
Jos. A. Bank said on Thursday that its board had rejected Men’s Wearhouse‘s sweetened takeover bid, worth nearly $1.8 billion, but said that it was willing to talk with its larger rival about a higher price.
The current Men’s Wearhouse unsolicited offer is inadequate and not in the interests of shareholders, Hampstead, Maryland-based Jos. A. Bank said yesterday in a statement.
Men’s Wearhouse on Monday raised its cash tender offer to Jos. A. Bank shareholders to $63.50 per share from $57.50, and added it could increase the offer to $65 if it was able to conduct limited due diligence. Bank of America (BAC) and J.P. Morgan (JPM) are serving as financial advisors to Men’s Wearhouse.
Jos. A. Bank shares gained $1.34, or 2.22%, to $61.65 at 8:47 am PT while Men’s Wearhouse shares rose $2.94, or 5.83%, to $52.99.