By Dow Jones Business News,
February 18, 2014, 01:55:00 PM EDT
Activist shareholder Eminence Capital LLC criticized Jos. A. Bank Clothiers Inc.'s planned $825 million deal for Eddie
Bauer, calling the acquisition a poor strategic move at an excessive price.
Eminence Capital, which owns a 4.9% stake in Jos A. Bank, has been pressing for a deal between the retailer and rival
Men's Wearhouse Inc.Jos A. Bank and Men's Wearhouse have exchanged takeover offers, but a deal hasn't materialized.
The letter from Eminence Capital Chief Executive Ricky C. Sandler said the planned deal "is a poor strategic decision
for Jos. A. Bank at a price that is in our view excessive and almost surely destroys shareholder value."
A representative from Jos. A. Bank wasn't immediately available for comment.
Eminence asserted that more "than 40% of Eddie Bauer's sales are to women and virtually all of its products are
outside of Jos. A. Bank's core men's tailored-clothing segment."
The letter also claims the planned deal confirms its accusations that Jos. A. Bank's board and management team "are
willing to engage in desperate tactics in an effort to protect their jobs and paychecks in blatant disregard for the
best interests of shareholders."
Last week, Jos A. Bank agreed to buy retailer Eddie Bauer, in a deal that makes it trickier for Men's Wearhouse to
pursue its offer for Jos. A. Bank. Men's Wearhouse's overture came after it turned down an earlier approach from Jos. A.
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