Jos. A. Bank Shareholder Accuses Retailer of ‘Desperate Tactics’ in Bid for Eddie Bauer
Eminence Capital LLC, a shareholder that's suing Jos. A. Bank Clothiers Inc. for rejecting a $1.6 billion takeover bid from rival Men's Wearhouse, accused the men's retailer Tuesday of resorting to "desperate tactics" to protect management jobs by planning to buy outdoor clothing retailer Eddie Bauer. In a letter to Bank's board, Eminence, a New York hedge fund that owns a 10 percent stake in Men's Wearhouse and about 5 percent of Bank's stock, called the $825 million cash-and-stock Bauer deal "a poor strategic decision for Jos. A. Bank at a price that's excessive and almost surely destroys shareholder value."