JOSB Jos. A. Bank Clothiers, Inc. (MM)

Jos. A. Bank Clothiers Inc. rejected Men's Wearhouse Inc.'s $1.8 billion takeover as "inadequate," but left open the possibility of ultimately agreeing to a tie-up between the two companies.

In a statement, Jos. A. Bank said it rejected Men's Wearhouse's $63.50-a-share offer, the company's latest bid in a long-running takeover saga. Men's Wearhouse had said it was willing to increase that offer to $65 a share if it gained access to Jos. A. Bank's books.

In rejecting the offer, the discount men's suit retailer said Thursday that it would be willing to meet with Men's Wearhouse and provide the company with a limited examination of its books, known as "due diligence, " in an effort to learn how much more Men's Wearhouse might be willing to pay. It's the first time Jos. A. Bank has agreed to negotiations with its rival on such a combination.

Write to Dana Mattioli at dana.mattioli@wsj.com

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