Men’s Wearhouse urged to consider bid

The Men’s Wearhouse Inc. was urged by Eminence Capital LLC, which disclosed that it had become the retailer’s largest investor, to engage in takeover talks with Jos. A. Bank Clothiers Inc., whose bid it spurned last month.

Eminence, a New York-based hedge fund, said in a letter to the Men’s Wearhouse board Thursday that while it agreed that Jos. A. Bank’s offer price was too low, the company’s other reasons for rejecting the bid were “disingenuous at best and reckless and misinformed at worst.” The fund said in a filing that it had taken a 9.8 percent stake in Men’s Wearhouse.

Eminence’s involvement in the takeover dispute, which was reported earlier by CNBC, increased speculation that a deal between the two menswear retailers may happen. Houston-based Men’s Wearhouse rejected Jos. A. Bank’s $2.3 billion offer the day it was made public and said its prospects are better as a standalone company.

Shares of Men’s Wearhouse rose 28 cents to close at $45.71. Hampstead, Md.-based Jos. A. Bank shares rose 49 cents, or 1 percent, to $48.80.

Ken Dennard, a spokesman for Men’s Wearhouse who works for Dennard-Lascar Associates LLC, didn’t respond to a voice mail seeking comment on the filing. Tom Davies, a spokesman for Jos. A. Bank who works for Kekst & Co., declined to comment on the filing.

Eminence said there should be a price Jos. A. Bank would be willing to pay that would fairly compensate Men’s Wearhouse’s shareholders. The fund also said it would exercise its right as a shareholder to hold Men’s Wearhouse’s board accountable if it fails to engage in talks with Jos. A. Bank and instruct financial advisers to evaluate other options by Monday.