Dive Brief:
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Eminence Capital LLC nominated Bruce Klatsky, Phillips-Van Heusen Corp. chairman from 1994 to 2007, and Norman Matthews, who has extensive executive and director experience in retail companies including Federated Department stores, to the Jos. A. Bank Clothiers Inc. board.
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The hedge fund owns 4.9% of Jos. A. Bank Clothiers Inc. stock and is the largest shareholder of The Men’s Wearhouse Inc. with a 10% stake.
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The move underscores Eminence’s desire for a merger between the two clothiers, an offer of which was once again rejected by Jos. A. Banks after the market closed Friday, Jan. 17. The offer, which expires March 28, 2014, was $57.50 per share — some $1.6 billion.
Dive Insight:
And you thought the ice queen’s dance in Disney’s movie Frozen was intense. In a move seen as escalating the merger tension between men’s clothiers Jos. A. Banks and Men’s Wearhouse Inc., hedge fund Eminence Capital nominated two pro-merger former retail company executives to the Jos. A. Banks board. The nominations come on the heels of another merger rejection by Jos. A. Banks, which called Men’s Wearhouse’s latest offer “not credible” and its motives “unclear.” The drama, which has seen rising price offers and poison pills, now seems never-ending. Stay tuned: Things could thaw out in the end, like they do in the movies.