A hedge fund has taken a 9.8 percent stake in Men's Wearhouse and will argue for the company to solicit more bids, CNBC's David Faber reported Thursday, attributing the information to sources.
As an activist shareholder, Eminence Capital will encourage the clothier to renew talks with Jos. A. Bank, whose offer Men's Wearhouse rejected last month, as well as solicit other bids to create more value, David Faber said on The Faber Report.
Men's Wearhouse, which sells discounted suits through more than 1,000 stores, turned down an offer of $48 a share from Jos. A. Bank and Golden Gate Capital, calling it too low. Jos. A. Bank said it could raise the offer after due diligence, but Men's Wearhouse would not let the process to move forward.
Shares of Men's Wearhouse shot up more than 9 percent Thursday, to $46.35.