UPDATE 2-Men's Wearhouse says has draft merger agreement from Jos. A. Bank

Mon Mar 3, 2014 8:59am EST
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* Men's Wearhouse says entered into non-disclosure agreement with Jos. A. Bank

* Says cos agreed to exchange certain confidential information

* Says cos will work in good faith to evaluate potential combination

March 3 (Reuters) - Men's Wearhouse Inc said it was discussing a proposed merger with smaller rival Jos. A. Bank Clothiers Inc, after the two men's apparel retailers spent months bidding for each other.

The companies have entered a non-disclosure agreement to exchange some confidential information and to work in good faith to evaluate a potential combination, Men's Wearhouse said on Monday.

Men's Wearhouse also said it has received a draft merger agreement from Jos. A. Bank, but there was no assurance the discussions will lead to a transaction.

The companies, leaders in a mature market, have bid and counterbid for each other since October.

Jos. A. Bank rejected Men's Wearhouse's revised $1.78 billion takeover offer last week, but said it would be willing to discuss a higher bid.

Men's Wearhouse raised its cash tender offer to Jos. A. Bank shareholders to $63.50 per share from $57.50, and said it could increase the offer to $65 if it was allowed limited due diligence.   Continued...