JoS. A. Bank In Talks To Buy Eddie Bauer : WSJ

(RTTNews) - JoS. A. Bank Clothiers Inc. (JOSB) is in talks to buy apparel fellow retailer Eddie Bauer from private-equity firm Golden Gate Capital, the Wall Street Journal reported on Saturday citing people familiar with the matter.

However, the Journal said that other details, including the price, couldn't be learned.

The talks come amid attempts by Jos. A. Bank and Men's Wearhouse Inc. (MW) to acquire each other. Jos. A. Bank's rejected bid for Men's Wearhouse in October was backed by Golden Gate Capital.

Golden Gate bought Eddie Bauer out of bankruptcy in 2009 for $286 million in cash plus the assumption of hundreds of millions of dollars in liabilities. Eddie Bauer, founded in 1920, makes casual clothing, sportswear and outerwear for men and women. The retailer has around 370 stores in the U.S. and Canada.

Meanwhile, the Journal, citing a person familiar with the matter, said that Jos. A. Bank has signed nondisclosure agreements related to possible acquisitions of other companies besides Men's Wearhouse. It isn't clear whether the company is seriously pursuing any other deal besides Eddie Bauer.

The report also said that Eminence Capital LLC, which owns big stakes in both Jos. A. Bank and Men's Wearhouse and wants them to combine, filed a complaint in a Delaware court in January seeking to block Jos. A. Bank from making an acquisition that the hedge fund fears would frustrate Men's Wearhouse's effort to buy the company by making it too expensive.

On Thursday, Men's Wearhouse urged directors of Jos. A. Bank to re-consider its $57.50 a share bid. The clothing retailer also expressed willingness to sweeten its offer if additional value is discovered during due diligence, as the acquisition battle between two firms continue.

Men's Wearhouse has also formally submitted its notice to nominate two independent director candidates to the board of Jos. A. Bank at its 2014 annual meeting.

On January 6, Men's Wearhouse launched a hostile sweetened offer of $57.50 a share to acquire Jos. A. Bank in an all-cash deal valued at about $1.6 billion. The cash tender offer expires on March 28. The move came just over a month after Jos. A. Bank rejected Men's Wearhouse's initial $55.00 a share offer, and 45 days after Jos. A. Bank withdrew its acquisition offer for Men's Wearhouse.

The flurry of acquisition bids between Men's Wearhouse and Jos. A. Bank began about three months back.

Hampstead, Maryland-based Jos. A. Bank had initially on October 9 offered to acquire Men's Wearhouse for $48 a share in cash, which Men's Wearhouse immediately rejected, stating it significantly undervalues the company and its strong prospects for continued growth and value creation.

Jos. A. Bank withdrew its $2.3 billion all-cash offer for Men's Wearhouse in mid-November, saying the Men's Wearhouse board failed to engage in good faith negotiations by a November 14 deadline.

Men's Wearhouse then in late November made its initial counter offer to acquire Jos. A. Bank in an all-cash deal valued at about $1.2 billion, just ten days after Jos. A. Bank withdrew its offer for Men's Wearhouse.

JOSB closed Friday's trading at $56.22, up $0.51 or 0.92% on the Nasdaq. MW closed Friday's trading at $48.04, up $1.04 or 2.21% on the NYSE.