Suitor drops bid for Men's Wearhouse

Source: Houston ChronicleNov.迷利倉 16--When Jos. A. Bank Clothiers terminated its offer to buy Men's Wearhouse for $48 per share on Friday, did it truly mark the end of its attempted takeover?Probably, but it is hard to say for sure, retail analyst Howard Davidowitz said.The hedge fund company Eminence Capital, which owns 9.8 percent of Men's Wearhouse shares, announced on Friday that it wants to call a special shareholder meeting to discuss changing the bylaws to allow shareholders to vote to oust the Men's Wearhouse directors.Ricky Sandler, CEO of Eminence Capital, said in a statement Friday, "Our special meeting initiative will give shareholders the tools to hold the board accountable for its failed leadership."Davidowitz doubts the board members will be removed to make way for people in favor of a buyout, but it remains a possibility.Jos. A. Bank, which had given Men's Wearhouse a Nov. 14 deadline to respond, said in a statement Friday that if Men's Wearhouse at a later date agrees to enter into discussions, it would consider a new proposal."We are extremely disappointed by the failure of the MW Board to engage with us," Jos. A. Bank chairman Robert Wildrick wrote in an email to the Chronicle.The proposal had support of Men's Wearhouse shareholders, he wrote."We sincerely hope the MW Board comes back to us. But time is short. We're looking at other potential opportunities, so the window of opportunity could close very quickly."Officials from Men's Wearhouse could not be reached for 迷你倉omment.Jos. A. Bank CEO Neal Black told the Chronicle earlier this month that his company had no interest in getting into an "entrenched battle" with Men's Wearhouse and would not attempt a hostile takeover.At that time, his company had sent a letter to Men's Wearhouse saying it would consider raising its proposed acquisition price if Men's Wearhouse would allow it to do "limited due diligence" on the company, and Men's Wearhouse did not respond.It would have been unwise for Men's Wearhouse to share such confidential information that may have been beneficial to its competitor, said Davidowitz, chairman of Davidowitz & Associates, a national retail consulting and investment banking firm in New York City.Both companies are better off focusing on improving their own operations rather than taking on a huge amount of debt, he said.Men's Wearhouse acquired clothing designer Joseph Abboud earlier in the year, he said.Both chains sell men's suits and sportswear, and Men's Wearhouse has a bigger formal wear business.Jos. A. Bank has 623 stores. Men's Wearhouse has 1,1137 operating under the names Men's Wearhouse, Moores and K&G.Shares of Men's Wearhouse, which has executive offices in Houston and Fremont, Calif., closed Friday at $46.63, up 51 cents, or 1.11 percent.Shares of Hampstead, Md.-based Jos. A. Bank closed at $50.72, up 41 cents, or 0.81 percent.Copyright: ___ (c)2013 the Houston Chronicle Visit the Houston Chronicle at .chron.com Distributed by MCT Information Services自存倉