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Monday, January 13, 2014

Eminence backs Men's Wearhouse bid for Jos. A. Bank, (NYSE: MW)

Eminence Capital LLC, a key shareholder in both Men's Wearhouse Inc and Jos. A. Bank Clothiers Inc, said it would seek a court ruling to prevent Jos. A. Bank from refusing to discuss a $1.61 billion takeover offer from Men's Wearhouse.The New-York based asset management firm - which owns about 10 percent of Men's Wearhouse and about 5 percent of Jos. A. Bank - urged Jos. A. Bank to start talks with Men's Wearhouse."... We firmly believe that you will not be able to deliver comparable value to shareholders through any other strategic transaction or action available to you," Eminence Chief Executive Ricky Sandler said in a letter to Jos. A. Bank's board released on Monday.Eminence accused the directors of the century-old retailer of men's tailored and casual clothing of breaching their fiduciary duties by not negotiating a deal with its rival.

The Men's Wearhouse, Inc. is a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. Shares of MW fell by 0.68% or $-0.345/share to $50.74. In the past year, the shares have traded as low as $27.47 and as high as $52.72. On average, 1131700 shares of MW exchange hands on a given day and today's volume is recorded at 463744.