Consumer stocks are slightly lower in afternoon trading, with
shares of consumer staples companies in the S&P 500 falling
0.2%. Shares of consumer discretionary firms in the S&P 500 are
down about 0.1%.
In company news, Jos. A. Bank (
) dropped its hostile bid for rival Men's Wearhouse (
), prompting MW's largest individual shareholder to launch a proxy
fight to oust the current MW board and force a deal.
Eminence Capital, which owns about 9.8% of MW's stock, this
morning proposed changing the company's bylaws to allow
shareholders to remove directors without cause, filing a
preliminary solicitation statement with market regulators. It also
is seeking a special meeting of MW shareholders to vote on the
proposed bylaw changes to remove sitting directors before the
company's next annual meeting.
Under Texas law, a special meeting can be called with the
support of at least 10% of a company's shareholders.
JOSB terminated its $48 per share cash buyout offer and said it
would now consider other strategic options, citing the refusal of
the MW board to discuss a possible deal. But it left the door ajar
for a possible acquisition, stating it would "immediately consider
whether a new proposal ... is warranted," should the MW board
change its stance on its offer.
JOSB last traded 0.7% higher at $50.67 apiece, reversing a steep
pre-market decline, while MW is up 0.8% at $46.47 a share.
In other sector news,
(+) TTS, (+1.7%) Refutes allegations it needs to restate past
financial results, stating they are accurate and adding its
business practices are appropriate. Also affirms in-line guidance
for $227 mln to $237 mln in FY13 revenue. Street is at $231.83
(-) SUMR, (-22.6%) Q3 net loss of $0.07 improves on 3.63 per
share loss last year but still trails analyst estimates expecting
$0.02 per share profit. Revenue declines 21.1% year over year to
$50.5 mln, missing by $7.57 mln. Announces more job cuts.
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