Jos. A. Bank Clothiers Inc's planned acquisition of outdoor sportswear retailer Eddie Bauer defies logic given that the companies cater to different customers, according to one of the men's apparel retailer's shareholders. The deal is "a poor strategic fit," said Eminence Capital LLC, which has been pushing for a merger between Jos. A. Bank and rival Men's Wearhouse Inc. Eminence is the top shareholder in Men's Wearhouse.Jos. A. Bank and Men's Wearhouse - both of whom are known for renting and selling tuxedos - have made and spurned offers for each other over the past few months. Earlier this month, Jos. A Bank rejected a $1.6 billion offer from Men's Wearhouse.Last week, Jos. A. Bank offered to purchase Eddie Bauer for $825 million, which would not only keep it independent, but also mark its move into women's apparel and footwear."Not only have you turned your back on an acquirer prepared to pay a substantial premium for the company, but you plan to deploy significant and valuable company resources into a troubling and risky sector ... in which you have absolutely no experience," Eminence said in a letter to Jos. A. Bank on Tuesday.
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 0.11% or $-0.05/share to $44.02. In the past year, the shares have traded as low as $27.47 and as high as $52.72. On average, 896655 shares of MW exchange hands on a given day and today's volume is recorded at 1592292.
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