Breakingviews

Diamond dealers show how to make M&A sparkle

February 19, 2014

Jewelry retailer Signet’s stock shone 17 pct brighter after agreeing to buy rival Zale at a 41 pct premium. That’s what happens when cost savings effectively cover the purchase price. It makes the tarnish on shareholder-unfriendly Comcast and Jos. A. Bank more noticeable.

Jos. A. Bank’s daft deal knits owners in a bind

February 14, 2014

To avoid being acquired, or perhaps to fetch a higher price from rival Men’s Wearhouse, the suits retailer is issuing stock to buy Eddie Bauer at $56, only to buy it back at $65. If the $875 mln transaction isn’t unraveled, shareholders will find themselves painfully stitched up.

Turning suit deal inside out reveals silver lining

November 26, 2013

After fending off a hostile bid from Jos. A. Bank, Men’s Wearhouse is now proposing to buy its smaller rival. Cost savings worth up to $1.1 bln cover much of the price and the combined company would be less indebted. Structured this way, the deal is financially more fashionable.

$2.3 bln stitch-up of Men’s Wearhouse is no cinch

October 9, 2013

Jos. A. Bank may be only half as large, but its fellow U.S. menswear retailer’s dishevelment makes for a tempting target. Even at a 36 pct premium, though, the clothes aren’t fitting. Men’s Wearhouse isn’t cooperating and the suitor has problems of its own with stagnating sales.