NEW YORK (AP) — Men's Wearhouse said Monday that it was boosting its takeover offer for Jos. A. Bank yet again, spurring hopes that the months-long saga might finally be coming to an end.
Men's Wearhouse raised its takeover offer for its rival by 10 percent to about $1.78 billion. Shares of both companies rose.
The two companies cater to different customers — Jos. A Bank is geared to a more established male professional, Men's Wearhouse a slightly younger man — but they offer similar types of clothing: suits and sport coats. As competition has increased in the sector and shoppers cut back due to the uncertain economy, analysts have said a merger is in the best interest of both companies. But agreement on terms has proved difficult. They have been attempting a combination since October.
Men's Wearhouse Inc. said Monday it's now offering $63.50 per share for Jos. A. Bank, up from its prior bid of $57.50 per share. The new offer, which is set to expire on March 12, is conditioned on Jos. A. Bank ending an offer it made for Eddie Bauer. Other conditions include Jos. A. Bank's directors redeeming or invalidating the shareholder rights plan that's in place.
Men's Wearhouse said it may even raise the bid further, to $65 per share, if it is able to examine Jos. A. Bank's books and given access to the company's management team.
Jos. A Bank Clothiers Inc. said its board is reviewing the offer.
The raised offer comes 10 days after Jos. A Bank announced that it was planning to buy the parent company of Eddie Bauer in a cash-and-stock deal valued at $825 million. But at the time Jos. A. Bank left the door open, saying that it may end the Eddie Bauer deal if it receives an acquisition offer that is superior.