Feb. 24 (Bloomberg) -- Men’s Wearhouse Inc. raised its offer for Jos. A. Bank Clothiers Inc. 10 percent to about $1.78 billion and would increase it more if the target agreed to terminate its deal to buy Eddie Bauer.
The offer of $63.50 a share expires March 12, Houston-based Men’s Wearhouse said today in a statement. The bid would increase to $65 if Jos. A. Bank ended the Eddie Bauer deal and let Men’s Wearhouse conduct limited due diligence.
Men’s Wearhouse is seeking to end a takeover battle that Jos. A. Bank started in October with its own offer for its larger rival. Men’s Wearhouse rejected that offer and has countered with its own bids for Jos. A. Bank, which have been rejected as too low. Jos. A. Bank earlier this month agreed to buy Eddie Bauer in a deal that may make the combined company too big for Men’s Wearhouse to acquire.
Jos. A. Bank rose as much as 13 percent to $62.45 in early trading after the announcement. The shares had closed at $55.05 in New York on Feb. 21, the most recent trading day. Houston- based Men’s Wearhouse was little changed on Feb. 21, closing at $45.11.