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Customers pass by a Jos. A. Bank store in Broomfield, Colo. The clothier said it would buy Eddie Bauer for $825-million (U.S.) in its latest effort to stay independent.
Customers pass by a Jos. A. Bank store in Broomfield, Colo. The clothier said it would buy Eddie Bauer for $825-million (U.S.) in its latest effort to stay independent.
(RICK WILKING/REUTERS)

U.S. suit seller’s deal for Bauer is one bad fit

Jos. A. Bank’s daft deal is knitting its shareholders in a bind. 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 (U.S.) a share, only to buy more back at $65. If the $875 million transaction isn’t unravelled, investors will find themselves painfully stitched up.