HAMPSTEAD, Md. (AP) — Jos. A. Bank is buying the parent company of Eddie Bauer.
The cash-and-stock deal is valued at $825 million.
The men's clothing company, which itself is being pursued by Men's Wearhouse Inc., made the deal with Everest Topco LLC to buy Everest Holdings LLC, Eddie Bauer's parent company.
Even as it announced the deal, Jos. A. Bank said it may back out if it receives an acquisition offer for its company that it feels is superior. It would have to pay a termination fee, but that leaves the door open for Men's Wearhouse to boost its offer.
Shares of Men's Wearhouse were down more than 4 percent this afternoon, while Jos. A. Bank's stock has moved higher.
©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.