Ricky Sandler, Eminence Capital Support The Men’s Wearhouse, Inc. (MW)’s Plans To Acquire Jos. A. Bank Clothiers Inc (JOSB)

Ricky Sandler’s Eminence Capital, which holds a significant activist stake in The Men’s Wearhouse, Inc. (NYSE:MW), expressed, in a statement, its support regarding the company’s intention to acquire Jos. A. Bank Clothiers Inc (NASDAQ:JOSB). The Men’s Wearhouse recently upped its bid for acquisition of Jos. A. Bank to $1.61 billion, which accounts for $57.50 per share, from $1.54 billion proposed earlier.

Ricky Sandler

At the same time, Eminence stated that it delivered a letter to the board of Jos. A. Bank Clothiers Inc (NASDAQ:JOSB), asking it to consider negotiating in good faith and try to find a business combination that will bring more value for its shareholders. The fund has also required the Board of the company not to take any actions that might put in danger the merger with The Men’s Warehouse, such as signing another agreement that might affect the deal. The fund plans to file a complaint in the Court of Chancery of the State of Delaware in order to prevent Jos A. Bank from continuing to breach their fiduciary duties by refusing to discuss with The Men’s Wearhouse, Inc. (NYSE:MW) and trying to prevent the transaction.

Eminence Capital holds a 9.9% stake in The Men’s Wearhouse, Inc. (NYSE:MW), which amasses around 4.68 million shares. Eminence revealed the stake earlier in November, following which the fund started to pursue the merger between Men’s Warehouse andJos. A. Bank Clothiers Inc (NASDAQ:JOSB), in which it holds a 4.9% stake.

At the same time, in the letter sent to Jos. A. Bank Clothiers Inc (NASDAQ:JOSB), Eminence said that it plans to nominate two individuals to be elected to to the company’s board at the next shareholders meeting.

“We are very encouraged by The Men’s Wearhouse, Inc.’s (MW) decision to submit its own slate of nominees for the JOSB 2014 annual meeting. We want it to be very clear that we intend to support MW’s nominees and we plan to withdraw our nominees if those proposed by MW are still in the running at the time of the JOSB annual meeting. However, given that JOSB’s nomination window will be closing soon, we feel compelled to submit our own slate at this time to ensure both that JOSB is pursuing the combination with MW as vigorously as possible, and that JOSB directors will be held accountable if they approve an alternative transaction or cause JOSB to take other action before the annual meeting that would frustrate a transaction with MW,” Mr. Sandler said in the letter.

Disclosure: none

Recommended Reading:

These Hedge Funds Lost A Bundle Betting On Lululemon Athletica inc. (LULU)

Millenium Management Sells Some More Shares of Liberator Medical Holdings Inc (LBMH)

Steven Cohen is Bullish on PDC Energy Inc (PDCE); Reports 5.1% Stake

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Least Expensive Cities in the World

Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!