Men's Wearhouse enters non-disclosure deal with Jos. A. Bank

Following swiftly after the news that Jos. A. Bank Clothiers and The Men's

Wearhouse Inc. advisers will start a series of discussions for future possibilities, today Men's Wearhouse confirmed that it had entered an non-disclosure agreement with Jos. A. Bank Clothiers on March 1, 2014.

The move suggests that the two companies are one step closer to a possible merger or combination of the businesses.

According to press release published by Men's Wearhouse, both companies have agreed to share certain confidential information and work together to decide on a potential combination of the companies. Men's Wearhouse also revealed that it had received a draft merger agreement from Jos. A. Bank.

As previously stated, Men's Wearhouse's cash tender offer to obtain all outstanding shares of Jos. A. Bank for 63.50 dollars per share, will expire at 5 p.m. New York time on March 12, unless the offer is extended. The company is still willing to increase its current offer to 65 dollars a share, if Jos A. Bank can exhibit additional value through future talks or due diligence.

Men's Wearhouse stated that the completion of the offer would not depend on any financing arrangements or be subject to a financing condition, and adds that “there can be no assurance that a transaction will result from the discussions with Jos. A. Bank”.