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Hedge funder wants to dress down Men’s Wearhouse board

An activist investor ramped up pressure on Men's Wearhouse to join forces with Jos. A. Bank on Wednesday, and he recommended a bold recourse for investors if the men's apparel chain's board of directors doesn't agree with him.

Eminence Capital CEO Ricky Sandler, the biggest shareholder in Men's Wearhouse at 9.8 percent, released a presentation Wednesday morning to investors renewing his calls for a merger with Jos. A. Bank.

He also announced plans to lobby for changes to board bylaws that would allow Men's Wearhouse shareholders to remove directors without cause before the next annual investors' meeting, according to a statement from Sandler's hedge fund.

Jos. A Bank withdrew a bid to take over Men's Wearhouse five days ago after a negotiation deadline of Nov. 14 wasn't met. Sandler claims Men's Wearhouse missed out on $2 billion worth of value when it declined to renegotiate the deal.

(Read more: Short sellers see once in a lifetime opportunity—if they can survive)

Ricky Sandler, Eminence Capital
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Ricky Sandler, Eminence Capital

"This is a board who has acted astonishingly given the situation," Sandler said on "Squawk on the Street." "In my 19 years being in business I can't remember a board that has acted this irresponsibly in front of an opportunity like this."

Sandler said his firm is in its lobbying campaign for the long term.

"If it takes us to next October to get full control of the board and effect the merger here, we're prepared to do that," he said.

(Read more: Jos. A. Bank terminates offer to buy Men's Wearhouse)

Eminence Capital began applying pressure on Men's Wearhouse earlier this month when it sent a letter to the board seven days before the negotiation deadline.

Men's Warehouse stock reached a 52-week high on Nov. 12 when it hit $48.56 per share. Jos. A. Bank also saw it's stock peak the same day at $51.42 per share. Both stocks have dipped slightly lower since then.

Sandler's presentation comes amid a wave of investor activism where hedge fund managers such as Dan Loeb of Third Point and Bill Ackman of Pershing Square Capital Management wage public campaigns against companies in which they invest or short.

Earlier Wednesday on CNBC, Dell Co. founder Michael Dell lashed out at major activist investor Carl Icahn, saying he had no long-term good intentions for his company.

(Read more: Icahn had no good intentions: Michael Dell)

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." Reuters contributed to this report.

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