Men's Wearhouse has launched a hostile bid for rival Jos. A. Bank.
On Monday, Men's Wearhouse launched a hostile bid, making a $1.6 billion cash offer and notifying Jos. A. Bank that it will nominate two members for its board of directors.
Monday's offer by Men's Wearhouse would pay shareholders $57.50 per share, a premium of 6% from Friday's closing price for Jos. A. Bank (. )
Shares of both companies were up 5% in premarket trading on the news.
"Although we have made clear our strong preference to work collaboratively with Jos. A. Bank to realize the benefits of this transaction, we are committed to this combination and, accordingly, we are taking our offer directly to shareholders," Men's Wearhouse ( CEO Doug Ewert said in a statement. )
A spokesman for Jos. A. Bank said the company did not have any immediate response. The company previously said it believed the earlier $55 per share offer "significantly undervalued the company."
The hostile bid is not a surprise. On Friday, Jos. A. Bank announced a shareholders' rights plan, commonly known as a poison pill defense, to block a hostile bid by granting additional shares should any buyer acquire 10% of its shares.
It has been a bruising six months inside the board room at Men's Wearhouse.
Men's Wearhouse is under pressure from its largest shareholder, Eminence Capital, to push for a deal.
|Michaels hack hit 3 million|
|GM's recalled Cobalt was a failure from the start|
|Ousted Yahoo exec gets $58 million golden parachute|
|Detroit pension cuts hit civilian workers hardest|
|Canadians arrest a Heartbleed hacker|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.32%||4.26%|
|15 yr fixed||3.36%||3.27%|
|30 yr refi||4.31%||4.24%|
|15 yr refi||3.34%||3.25%|
Today's featured rates: