You might remember the most recent bid that Men’s Wearhouse made for the smaller company. The board of Jos. A. Bank refuses to discuss the offer, and the leadership of Eminence thinks that it should.
A merger would make sense, with two similar retailers that serve similar markets joining forces. The CEO of Eminence Capital estimates that a merger could save about $2 billion per year, though it would be less great for competitors and consumers. It would be pretty great for shareholders, though. Like Eminence Capital. That’s why the firm filed suit against the Jos. A. Bank board for refusing to discuss the bid, and for making changes to make it harder for one investor to take control of the company.
Jos. A. Bank Board Sued for Rebuffing Men’s Wearhouse Offer [Bloomberg Businessweek]