Jos. A. Bank agrees to buy Eddie Bauer
The deal will include $564 million in cash and approximately 4.7 million new shares of common stock of Jos. A. Bank. To deal with the dilution of shares of existing shareholders, the company announced it will repurchase the same number of its own shares for $65 a share, well above current trading prices.
That part of the announcement helped lift shares of Jos. A. Bank about 4% in premarket trading. Shares of Men's Wearhouse fell nearly 10%.
Men's Wearhouse has offered $57.50 in a hostile bid for Jos A. Bank, worth $1.6 billion. After Jos. A. Bank rejected the deal, Men's Wearhouse announced it was prepared to increase its all-cash offer if the company would enter into negotiations and provide limited access to its financial information.
The biddng war began with Jos. A. Bank making an unsolicited $2.4 billion bid for Men's Wearhouse in October.
The deal for Eddie Bauer can be canceled by Jos A. Bank if its board decides to accept the Men's Wearhouse offer.
Jos. A. Bank also warned that its fourth quarter earnings would be well below the forecast of analysts surveyed by earnings tracker Thomson Reuters. It said weak post-Christmas clearance sales hurt results. 
First Published: February 14, 2014: 7:24 AM ET
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