Six Moves That Tip Jos. A. Bank, Men’s Wearhouse Toward MergerMarch 4, 2014 – In The News
Ted D. Rosen was quoted in the Law360 article “Six Moves That Tip Jos. A. Bank, Men’s Wearhouse Toward Merger.” While the full text can be found in the March 4, 2014, issue of Law360, a synopsis is noted below.
After a series of developments over the past week that reframed relations between Men’s Wearhouse Inc. and Jos. A. Bank Clothiers Inc., the menswear powerhouses appear closer than ever to finalizing a buzzed-about merger deal worth around $2 billion. Reaching this point, however, has not been easy.
“Men’s Wearhouse is being very aggressive in litigation to try to stop the transaction or delay the transaction. Jos. A. Bank is being extremely proactive,” said Rosen. “This battle is being played out at a very high level on both sides.”
Jos. A. Bank Chairman, Robert Wildrick, sent a letter to Men’s Wearhouse CEO, Douglas Ewert, saying that Jos. A. Bank would open itself to negotiations – but on its own terms. Wildrick laid out a point-by-point agenda for the companies’ discussions, including restrictions imposed on due diligence and the makeup of the consideration, recalling Men’s Wearhouse statements that indicate the proposal could include a stock piece.
“The latest missive is a very astute move,” Rosen said. “It’s aggressive but it leaves the door open. It says, ‘We’re going to negotiate, but we’re going to negotiate the way we want to do it.’”