On Tuesday, a judge in Delaware accelerated the proceedings of Men's Wearhouse as ongoing negotiations between Jos A Bank and Eddie Bauer continue. Jos A Bank is reportedly planning to acquire the clothing retailer for $825 million, which was seen by Men's Wearhouse as an attempt to block an unwanted suitor. Men's Wearhouse filed a lawsuit against Jos A Bank to halt the proposed merger this week, the New York Times' The DealBook said in its report.
According to DealBook, Men's Wearhouse's lawsuit is the latest development that dates back to October of last year. Jos A Bank initially proposed an offer to acquire Men's Wearhouse, with the latter flipping the tables by putting up an offer of its own for Jos A Bank. Jos A Bank rejected Men's Wearhouse's $57.50 per share offer. DealBook said that early this week, Men's Wearhouse upped its offer to $63.50 per share, with shareholders of Jos A Bank have until March 12 to mull over the buyout offer.
Judge J Travis Laster did not block Jos A Bank's proposed merger deal with Eddie Bauer deal. However, he ordered the men's suit retailer to submit supporting documents in relation to the planned acquisition and reasoned that he agreed to expedite Men's Wearhouse's lawsuit over concerns that the deal with Eddie Bauer was possibly a defensive maneuver on Jos A Bank's part. Moreover, Laster insist on Jos A Bank to provide Men's Wearhouse a 10-day notice before finalizing its deal with Eddie Bauer.
Quoting his words on a court transcript, Laster said, "The allegations of the complaint, taken as a whole, create a colorable basis to believe that the features of the Eddie Bauer transaction are such that in their totality they may well fall outside the range of reasonableness,"
DealBook said Laster is expected to hand down a final decision on March 25.
