Consumer stocks were off their worst levels of the session with
shares of consumer staples companies in the S&P 500 slipping
about 0.6%. Shares of consumer discretionary firms in the S&P
500 were about down about 1.1%.
In company news, shares of Men's Wearhouse (
) and Jos. A. Bank Clothiers (
) were narrowly higher Monday in late trade after MW today said the
men's apparel retailers have agreed to exchange certain
confidential information and to work on a good faith effort to
evaluate a potential business combination.
The move follows MW this weekend receiving a draft merger
agreement from JOSB, which last week again rejected MW's latest
buyout offer of $63.50 a share. But in its statement today, MW said
it was prepared to increase its offer price to $65 per share "if
Jos. A Bank can demonstrate or Men's Wearhouse can discover
additional value through discussion or limited due diligence."
MW currently has nearly twice the 602 stores of JOSB, which
claims to serve a higher-spending, more mature customer base than
its larger rival. MW sales through the first nine month of 2013
were up 1.7% over the prior year at $1.91 billion while JOSB
recorded 2.7% sales growth during the first three quarters of 2013
to $694.5 million in total revenue.
In other sector news,
(+) SQBG, Canaccord Genuity begins coverage with a Buy Rating
and a $9 per share price target, cites "Treasure Trove of
(-) WILC, Controlling shareholders Zwi and Joseph Williger
disclose plans to sell their entire 58% stake in the food
distributor to Israeli conglomerate Emblaze Ltd., which is seeking
to acquire 5% of WILC shares through a special tender offer.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.