Eminence Capital Takes 9.8% Stake In Men's Wearhouse

(RTTNews) - Hedge fund Eminence Capital LLC Thursday said in a SEC filing that it had taken a 9.8 percent stake in Men's Wearhouse Inc. (MW), thus becoming one of the largest investor. The fund encouraged the retailer to continue to engage in talks with with rival Jos. A. Bank Clothiers Inc. (JOSB), whose takeover bid was rejected last month.

Eminence, in a letter send to Men's Wearhouse, said that while they agree with Men's Wearhouse that the takeover offer from Jos A. Bank undervalues the company, they believe the Board's other reasons for rejecting the proposal are without merit.

Last month, Men's Wearhouse's board had rejected an unsolicited takeover bid from retailer JoS. A. Bank of $48 per share in cash, representing a total equity value of about $2.3 billion.

Men's Wearhouse board had noted that the proposal significantly undervalues the company and its strong prospects for continued growth and value creation. The board also opined that the offer is not in the best interests of the company or its shareholders.

Men's Wearhouse had also adopted a shareholder rights plan after rejecting the offer.