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High Hopes Again on Merger Between Men’s Warehouse and Jos. A. Banks

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According CNBC, the hedge fund Eminence Capital has accumulated a 9.8 percent stake in the Men's Wearhouse, Inc. (NYSE:MW). The hedge fund will try to push Men’s Wearhouse to reconsider Jos. A. Bank Clothiers Inc's (NASDAQ:JOSB) previous takeover offer. Eminence believes that the merger makes sense, but that the $48 per share offer to buy Men’s Wearhouse by Jos A Bank and Golden Gate Capital was too low. Jos A Bank is willing to raise its offer price to acquire Men’s Wearhouse. It is just a matter of time before Men’s Wearhouse realizes that stubbornness doesn’t work in the face of activist investors like Eminence Capital. I believe a deal will happen by the end of the year or the beginning of the first quarter of 2014.