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$JOSB, $MW, Jos. A. Bank, No Benefit To Negotiate With Men’s Wearhouse

Posted by: : Paul EbelingPosted on: February 3, 2014 $JOSB, $MW, Jos. A. Bank, No Benefit To Negotiate With Men's Wearhouse

$JOSB, $MW, Jos. A. Bank, No Benefit To Negotiate With Men’s Wearhouse

Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) Sunday rejected yet another offer by rival Men’s Wearhouse Inc (NYSE:MW), the latest in a prolonged acquisition battle between the 2 men’s clothing retailers.

In response to Men’s Wearhouse offer last week that it is open to sweetening its spurned buyout offer under certain conditions, Jos. A. Bank said the proposal was still undervaluing the company.

“After carefully reviewing your offer with our financial and legal advisors, we continue to believe that your offer to acquire Jos. A. Bank substantially undervalues our company and that your proposal is not in the best interests of our stockholders,” said the letter to Douglas Ewert, president of Men’s Wearhouse.

“Accordingly, we see no benefit in commencing negotiations with Men’s Wearhouse.”

In a letter to Jos. A. Bank’s independent directors Thursday, Men’s Wearhouse said it could raise an offer of $1.61-B, or 57.50/share, “if additional value was discovered through discussions or limited due diligence.

JOSB closed Friday at 56.22/share; Men’s Wearhouse shares finished d at 48.04.

HeffX-LTN Analysis for JOSB: Overall Short Intermediate Long
Neutral (0.18) Neutral (-0.01) Neutral (0.21) Bullish (0.35)
HeffX-LTN Analysis for MW:  Overall Short Intermediate Long
Neutral (-0.06) Neutral (-0.03) Neutral (-0.13) Neutral (-0.01)

Stay tuned…


Paul Ebeling


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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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