Jos. A. Bank Clothiers Inc. (JOSB) rejected a roughly $1.5
billion acquisition offer from rival men's clothing retailer Men's
Wearhouse Inc. (MW), saying the price offered "significantly
undervalued" the company.
Jos. A. Bank added that it is continuing to review potential
strategic options.
"Our board undertook a thorough review and determined that the
per share consideration in the proposal made to us by Men's
Wearhouse was simply not in the best interest of our shareholders,"
said Robert N. Wildrick, chairman of Jos. A. Bank. "At the same
time, we continue to review acquisition opportunities that would
represent a strong strategic fit with our company."
The latest bid rejection is another chapter in Jos. A. Bank and
Men's Wearhouse's back-and-forth acquisition efforts.
Jos. A. Bank, which is based in Hampstead, Md., first made an
unsolicited $2.3 billion offer for its Houston-based rival in early
October, but it was soon rejected. Later in the month, Jos. A. Bank
said it would consider raising its bid for Men's Wearhouse if it
were able to conduct limited due diligence. Men's Wearhouse again
rebuffed the overture, calling Jos. A. Bank's offer of $48 a share
too low.
In November, Jos. A. Bank withdrew its takeover offer, but left
the door open for possible talks in the future. Later that month,
Men's Wearhouse made a $55 a share offer for Jos. A. Bank, which
was rejected Monday.
A Men's Wearhouse representative wasn't immediately available
for comment.
Jos. A. Bank shares closed Friday at $57.03, and Men's Wearhouse
shares closed at $52.01.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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