The Men's Wearhouse confirmed it had received a draft merger agreement from Jos. A. Bank Clothiers after signing a non-disclosure agreement with the retailer Saturday that could spell an end to Jos. A Bank's agreement to acquire Eddie Bauer for $825 million.
Men's Wearhouse noted that its existing cash tender offer for $63.50 would provide Jos. A. Bank shareholders with a substantial premium and immediate value, and that as previously announced, Men's Wearhouse is prepared to increase its offer price to $65 per share if Jos. A. Bank can demonstrate or Men's Wearhouse can discover additional value through discussions or limited due diligence.
Men's Wearhouse's cash tender offer to acquire all outstanding shares of Jos. A. Bank Clothiers, Inc. for $63.50 per share is scheduled to expire at 5:00pm ET on March 12, unless the offer is extended. Men's Wearhouse repeated Monday that while it has financing lined up for the transaction, there is no guarantee to two retailers will come to terms.