Friday, 24 October 2014
Last updated 9 hours ago
Feb 19 2014 | 11:35am ET
Eminence Capital wants to see Jos. A. Bank Clothiers merge—but not with the partner Jos. A. Bank favors.
The New York-based hedge fund yesterday blasted Bank's proposed takeover of outdoor clothing retailer Eddie Bauer as a move that "almost surely destroys shareholder value." Eminence said the $825 million deal was nothing but a "desperate tactic" on the part of Jos. A. Bank's management to stave off a takeover.
And a takeover is exactly what Eminence wants to see, but by Men's Wearhouse. The hedge fund has sued Jos. A. Bank for rejecting that company's $1.6 billion approach, and to block it from doing something exactly like the Eddie Bauer deal.
Eminence owns about 10% of Men's Wearhouse and 4.9% of Jos. A. Bank.
Indeed, there's nothing about the Eddie Bauer deal that is attractive to Eminence. According to the hedge fund, Jos. A. Bank has offered to pay too much, established a too-high break-up fee and has no business in the outdoor clothing business.
"You plan to deploy significant and valuable company resources into a troubling and risky sector of the retail and apparel industry in which you have absolutely no experience," Eminence wrote. The buyout is "quite a good deal for" Golden Gate Capital, which owns Eddie Bauer, but "an exceptionally poor outcome for Jos. A. Bank shareholders."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.