Men's Wearhouse Inc mounted a hostile $1.61 billion bid for Jos. A. Bank Clothiers Inc in an attempt to break the resistance of its smaller rival and pacify investor demand for a merger of the suit retailers.Men's Wearhouse offered $57.50 per share for Jos. A. Bank, above its previous bid and a 6 percent premium to the stock's close on Friday. Premarket trading was thin in shares of both companies, which share some of the same investors.By upping its offer and taking it to every Jos. A. Bank shareholder, Men's Wearhouse is raising the stakes in a protracted battle between rivals intent on playing the lead role in the creation of a combined chain with 1,700 stores.The offer, higher than its previous bid of $55 per share, will also test the poison pill defense adopted by Jos. A. Bank on Friday. The company lowered the trigger to 10 percent from 20 percent to make a takeover more difficult.
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 remained unchanged at $50.59. In the past year, the shares have traded as low as $27.47 and as high as $52.72. On average, 1422650 shares of MW exchange hands on a given day and today's volume is recorded at 0.
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