Ricky Sandler‘s Eminence Capital just revealed that it holds a 9.8% stake in The Men’s Wearhouse, Inc. (NYSE:MW). Sandler is a known activist, and shares are up over 8% on the news. Also, Eminence sent a letter to the company’s Board of Directors, expressing its disappointment with the board’s reply to the proposal from Jos. A. Bank Clothiers Inc (NASDAQ:JOSB), which offered to acquire The Men’s Warehouse for $48 per share.
“We agree with the Board that the proposed $48 share price undervalues MW both for its stand-alone prospects and for its fair share of the merger synergies. However, we know from historical M&A practice that acquirers rarely put forth their best price in their first offer,” the fund said.
The whole letter can be accessed through the link below: