|By PR Newswire||
|January 17, 2014 07:57 PM EST||
SAN DIEGO and HAMPSTEAD, Md., Jan. 17, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the recommendation of the Jos. A. Bank Clothiers, Inc. (NASDAQ: JOSB) board of directors that shareholders take no action on the tender offer commenced by The Men's Wearhouse, Inc. (NYSE: MW). On January 6, 2014, The Men's Wearhouse announced that it had commenced a cash tender offer to acquire all outstanding shares of Jos. A. Bank for $57.50 per share in cash.
Is the Tender Offer Best for Jos. A. Bank and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at Jos. A. Bank is undertaking a fair process to impartially review the tender offer in the best interests of its shareholders. Specifically, the investigation concerns whether Jos. A. Bank's announcement on January 3, 2014, that it reduced the ownership threshold of its shareholder rights plan from 20% to 10% was designed to protect the interests of an entrenched board of directors.
The Men's Wearhouse's $57.50 tender offer is 4.5%, or $2.50 per share, higher than its previous offer of $55.00 made on November 26, 2013, which the Jos. A. Bank board rejected and refused to negotiate. Further, the offer represents a premium of 38.02% based on Jos. A. Bank's closing price of $41.66 on October 8, 2013, the day before Jos. A. Bank submitted a $48.00 per share bid to acquire The Men's Wearhouse. Further, prior to Men's Wearhouse's initial offer of $55.00 per share on November 26, 2013, Jos. A. Bank had not traded above the current offer price of $57.50 in the previous three years. In the last three years, Jos. A. Bank has traded as low as $37.31 as recently as on January 28, 2013, closing at $39.28 on the same day.
Jos. A. Bank shareholders have the option to file a class action lawsuit to ensure the board of directors properly evaluates the proposal to obtain the best possible price for shareholders and the disclosure of material information. Jos. A. Bank shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP