NEW YORK — A minority shareholder of Jos. A. Bank Clothiers Inc. plans to nominate two independent directors for the board of the men’s clothing company which is being pursued by rival Men’s Wearhouse.
Eminence Capital LLC, which owns 4.9 percent of Jos. A. Bank’s stock, said Tuesday that it plans to make the board nominations at Jos. A. Bank’s 2014 shareholders meeting.
Last week Men’s Wearhouse raised its offer to acquire Jos. A. Bank to $1.61 billion. It is now offering $57.50 per share for Jos. A. Bank, up from its prior offer of $55 per share, or $1.54 billion.
Jos. A. Bank rejected the previous offer in late December, saying it was too low. Men’s Wearhouse said it is taking the bid directly to Jos. A. Bank shareholders. Men’s Wearhouse also plans to nominate two people to the Jos. A. Bank board.
Eminence Capital Ricky Sandler said in statement Tuesday that Eminence plans to support Men’s Wearhouse’s board nominees and will withdraw its nominees if the ones proposed by Men’s Wearhouse Inc. are still in the running at the time Jos. A. Bank’s annual meeting is held.
Sandler said Eminence Capital felt it should submit its own board nominees in part to help ensure that Jos. A. Bank pursues the potential combination with Men’s Wearhouse as vigorously as possible. He added that Eminence Capital also wants to make sure that Jos. A. Bank directors will be held accountable if they approve an alternative transaction or cause Jos. A. Bank to take other action before the annual meeting that would cause issues with a deal with Men’s Wearhouse.
Sandler said Eminence Capital would like Jos. A. Bank to meet with Men’s Wearhouse and hold good faith negotiations so that a possible deal can be reached.